ans to problem set2 f06

Intermediate Microeconomics: A Modern Approach, Seventh Edition

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 301 – F06 ANSWERS PROBLEM SET 2 Wissink 1. Critically evaluate the following statements and explain why or in what way are they true, false, or uncertain. a. Over the set of people in New York, the binary relation "is the half-brother of" is transitive. 1 False, the relation "is the half-brother of" is not necessarily transitive. Here’s an example. Suppose Joe and Mary beget Joey; Mary and Fred beget Freddy; and Fred and Jackie beget Jack. Then, Joey is the ½ brother of Freddy and Freddy is the ½ brother of Jack; but Joey is NOT the ½ brother of Jack. b. Over the set of people in New Jersey, the binary relation "is the mother of" is complete. False, the relation "is the mother of" is not complete over. For example suppose you and I both come from NJ. I am not your mother and you are not my mother and we are not each other's mothers, so, the relation is not complete. c. If I am always willing to substitute six units of y for an additional unit of x, then my preferences violate the monotonicity axiom. No, they violate the STRICT CONVEXITY assumption. Can’t refer to the notion of monotonicity at all here since you are getting more of one good and less of the other. 2. Draw indifference curve maps containing at least two indifference curves for the following descriptions of preferences and indicate the direction in which happiness is increasing. See last page. 3. Coach Steroid likes his players to be big, fast, and obedient. If player A is better than player B in two of these three characteristics, then Coach Steroid prefers A to B, but if B is better than A in two of these three characteristics, then Steroid prefers B to A. Otherwise, Steroid is indifferent between them. Wilbur Westinghouse weights 340 pounds, runs very slowly, and is fairly obedient. Harold Hotpoint weighs 240 pounds, runs very fast, and is very disobedient. Jerry Jacuzzi weighs 150 pounds, runs at average speed, and is extremely obedient.
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern