(Imagine that it is possible for Elmo to have fractions of quarters or of dimes, but, of course, they would be useless in the machine.

(Imagine that it is possible for Elmo to have fractions of quarters or of dimes, but, of course, they would be useless in the machine.) Now use blue ink to shade in the area consisting of all combinations that Elmo thinks are just indierent to having 4 quarters and 2 dimes. Notice that Elmo has indierence bands, not indierence curves. (c) Does Elmo have convex preferences between dimes and quarters? (d) Does Elmo always prefer more of both kinds of money to less? (e) Does Elmo have a bliss point?

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