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Figure 4.7 Preferences for Breakfast Cereal by Older and Younger Adults
Fifty-year-old Ricardo (a) has a greater MRS of fiber for sugar (and steeper indifference curves) than 20-year-old David (b). Accordingly, Ricardo is more likely to want his fiber and less willing to trade fiber content for sugar. Because David has a lower MRS of fiber for sugar, he is more willing to give up fiber for sugar. As a result, his indifference curves are flatter.