Consider your tastes for five dollar bills and ten dollar bills (and suppose that you could have partial $10 and $5 bills).

Consider your tastes for five dollar bills and ten dollar bills (and suppose that you

could have partial $10 and $5 bills). Suppose that all you care about is how much money you

have, but you don’t care whether a particular amount comes in more or fewer bills.

(a) With the number of five dollar bills on the horizontal axis and the number of ten dollar

bills on the vertical, illustrate three indifference curves from your indifference map.

(b) What is your marginal rate of substitution of ten dollar bills for five dollar bills?

(c) What is the marginal rate of substitution of five dollar bills for ten dollar bills?

 
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