HW2 - ECO 3301 Fall 2010 Homework 2 The due date for this...

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

View Full Document Right Arrow Icon
ECO 3301 Fall 2010 Homework 2 The due date for this assignment is Monday, September 20 (beginning of class) 1. The following combinations of goods X and Y represent various market baskets. Con- sumption is measured in pounds per month. Market Basket Units of X Units of Y A 4 6 B 16 7 C 15 3 D 3 2 Plot these bundles in a X (horizontal axis) - Y (vertical axis) plane. Now, explain which market basket(s) is(are) preferred to other(s), and if there is any uncertainty over which is preferable, point this out as well. 2. In the theory of consumer behavior, certain axioms about the nature of preferences imply that indi/erence curves cannot cross. Which axioms imply this? Explain your answer using a diagram. 3. Draw a set of indi/erence curves for the following preferences. Label your axes carefully . (a) Hamburgers and carrots for a vegetarian who neither likes nor dislikes meat. (b) Peanut butter and jelly for an individual that will not eat peanut butter sandwiches or jelly sandwiches, but loves peanut butter and jelly sandwiches made with two
Background image of page 1

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

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

This note was uploaded on 09/23/2010 for the course ECO 3301 taught by Professor Mananroy during the Spring '10 term at Southern Methodist.

Page1 / 2

HW2 - ECO 3301 Fall 2010 Homework 2 The due date for this...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online