This preview shows page 1. Sign up to view the full content.
Unformatted text preview: in fact contain more movies than basketball games. 2) a) b) This utility function shows strictly diminishing MRS, so the MRS is greater than that of the optimal bundle in part a. 3) If Bob dislikes both x and y, his indifference curves will be downward sloping. If Bob likes one but not the other, his indifference curves will be upward sloping. 4) 5) For Bob, For Mary, 6) a) Completeness is satisfied because is defined for all b) Transitivity is satisfied. In the domain, if , and , then , and . Thus, , and . The same can be shown for other inequalities or equality in the and/or domain. c) Moreisbetter is not satisfied. . 20 110 100 50 40 (40, 30)...
View
Full
Document
 Spring '08
 Govel

Click to edit the document details