Problem
The "Tiny" island economy produces only two goods, coconuts and pineapples. There are four people (A, B, C and D) living on the island. Their preferences are as follows:
A has a strong preference for pineapples; B has a strong preference for coconuts; C doesn't care for any pineapples; and D doesn't care for any coconuts.
1) For each of the four people, draw a representative indifference curve in a diagram (measure pineapples along the vertical axis).
2) Define the MRS of coconuts to pineapples (MRSC,P).
3) Discuss the shape of each indifference curve you have drawn for part (a) and relate them to the MRSC,P.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.