# Gregorian and Boudicca each have incomes of \$30 and each shop at Star Market, where apples cost \$2..

Gregorian and Boudicca each have incomes of \$30 and each shop at Star Market, where apples cost \$2 each and bananas cost \$1 each. Every day, Gregorian buys 6 apples and 18 bananas, and so does Boudicca. One day a new supermarket (called Acme) opens up. At Acme, apples cost \$1 and bananas cost \$2. Gregorian prefers to keep shopping at Star Market, but Boudicca switches to Acme. a. Draw a diagram showing Gregorian s budget lines at Star Market and Acme. Illustrate his indifference curves. Do the same for Boudicca. b. What is the key difference between the shapes of Gregorian s and Boudicca s indifference curves? c. True or False: At Acme, Boudicca will surely buy more than 10 apples. d. The president of Star Market Points out that at Acme, Boudicca will no longer be able to afford the basket she s been buying at Star Market. Is this a good reason for Boudicca to reconsider her choice?