Consider a consumer of bologna and bread, which is typically eaten together as a

Question

Consider a consumer of bologna and bread, which is typically eaten together as a sandwich( ie. one slice of bologna and tw
slices of bread result in one sandwich, two slices of bologna and four slices of bread result in two sandwiches) two representative indifference curves are depicted:

Assuming all indifferences follow a similar shape as those depicted, if the consumer's income is $100 and the price of a slice of bread is $1 how much bologna and bread does this consumer buy in order to maximize utility (subject to budget constraint)?

Explanation / Answer

Bologna and Bread are complemets like right and left shoe, indifference curves for these type of perfect complents will be right angled as shown in the figure, Let us take the first Curve, where 2 bread slices and 1 bologna is required to make a sandwich. If we take another corresponding point on first curve of 2 bread slices, any point on the bolonga curve above 1 unit is useless. (I think u had missed in giving the price of bologna) I assume that the price of bologna is $2 So, given budget constraint, 50 slices of bread and 25 slices of bolonga is brought to make 25 sandwiches. 50x$1= $50 25 x$2=$50 total= $100

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