1. Suppose that Uncle Alvarez likes to eat raisin bran every morning for breakfast but he doesn’t care if he eats Kellogg’s raisin bran or Post raisin bran. For him they are perfect substitutes. Sketch at least three indifference curves for Uncle Alvarez and show the direction in which his utility is increasing. 2.Suppose that Victoria hates chicken liver but loves filet mignon. Draw a few indifference curves for Victoria. Put chicken liver on the x-axis and label the direction in which Victoria’s utility is increasing.
UTILITY MAXIMIZATION 1.a.Brieflyexplain to someone who has never taken an economics class what the following condition means. . b.Give a brief intuitiveexplanation of how and whyan individual should change his or her optimal consumption of good 1 and good 2 if .