Shampoo and conditioner

108 views 7:54 am 0 Comments April 25, 2023

For Maahir, shampoo and conditioner are perfect complements. He likes to use 1 squirt of shampoo and 1 squirt of conditioner each time he washes his hair. a. Draw a set of indifference curves for Maahir that illustrate the utility he derives from using shampoo and conditioner. b. Assume that shampoo costs $4 and conditioner costs $2. Construct a budget constraint for Maahir and describe his purchasing habits. What is his optimal bundle likely to look like? (Hint: Assume some level of income for Maahir.) c. Suppose that prices change so that shampoo costs $2 and conditioner costs $4. What is likely to happen to Maahir s optimal bundle as a result? Explain. d. How would your answer to (c) change if Maahir used 2 squirts of shampoo and 1 squirt of conditioner each time he washed his hair?