h3e4 solutions - 98 CHAPTER 4 Consumer Choice See Question...

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Unformatted text preview: 98 CHAPTER 4 Consumer Choice See Question 7. reducing the amount of burritos she consumes until she consumes no burritos—~ scenario that violates our assumption that she consumes positive quantities of bot goods.10 Though it is possible that consumers prefer less to more at some larg quantities, we do not observe consumers making purchases where that occurs. In summary, we do not observe consumer optima at bundles where indifferenc curves are concave or consumers are satiated. Thus, we can safely assume that indif ference curves are convex and that consumers prefer more to less in the ranges o goods that we actually observe. 108imilarly, at her optimal bundle, Lisa cannot be satiated—indifferent between consuming more or L comm kmmm annncp rkar hpr l'nvlon k n‘hmined bv working and that Lisa does not like working 'V 2912 51 195 A111111110dd0 9111 110112111qu9 1291111 A112 10 ‘5p003 191110 112 10 5111111 A ‘111u0111 19d 1900110 5111111 A Anq 1129 110519d 9111 : A 12 59x2 1110q 51111 12111 91111 193pt1q 2 5211 A 10 911109111 A1111110111 2 11111111 11051911 V '5111111 10 9910119 91211d01dd2 112 11111111 ‘11; 111011 912 5190033191110 112 10 991111 9111 p112 p00110 111111 2 10 9911d 9111 ‘01'17 9111313 111 1 W1qu men 9111 52 ‘op 9111211 911125 9111 10 511111215 p001 112111 910111 Aq 195 A111111110dd0 5‘11191d1991 2 595121 111213 11529 2 ‘1111591 2 5V 'p952119111d 9q U29 511003 191110 10 p001 1911119 ‘11529 111111“ 19911121110 9q 1129 19001 211119 A1110 ‘5du1215 11001 11111111 '5d111215 p00} 10 1111101112 91q212d11109 2 91119991 011111 950111 112111 59910119 910111 911211 11529 91119991 011111 91d09d 100d ‘sdwmg p005 01 19911919“ 51 11523 AqM 5511003 191110 110 910111 p112 19001 110 5591 19119d5 511191111991 9111 p1110/x\ 5511191d1991 11111215 p001 10 3111911119111 9111 952919u1 Ap15q115 11529 91112121111109 2 01 119111115 2 p1nom '119111 19112 1911211 01 911p 595501 9911p91 p112 51509 9111121151111111112 19111101 p1110AA’ 111213o1d 11529 2 01 5d111215 1100111101131111191111115 ‘5191511211 pun} 91110119919 111 599112Ap2 129130101111991 10 951129911 '5151X9 1119111 101 19>112111 >192111 2 113110111 ‘p105 9q 1011 A2111 5d111215 p001 ‘A112391 1100} 110 A1110 1119d5 9qv 1129 12111 5110dn0910 192915111 11529 10 s>199119 3111p1A01d Aq 5d111215 p001 “1110 311111529” p912q9p 9A211 519>12u1A9110d p112 ‘5151 -1101111111u ‘5151u1011099 ‘50961 A1129 9111 111 19911215 511121301d d111215 p001 9111—991113 ' '900Z 111 91d09d 1101111111 ['63 A112911 101 110111111 1'gg$ 10 591n11p119dx9 11111111 511121301d 9121191111 121905 1593121 511011211 9111 10 9110 51 u121301d 5d111213 13005 9111 '591015112191 111011 p001 952119111d 01 p9511 9q 1129 12111 5110111109 91119991 51119111 -91111b91 A1111q13119 1u91qu1d1119 p112 ‘19552 ‘911109111 199u1 12111 5p101195110H '(zooz ‘10113 p112 112A111ng) p001 91211b9p2111 1110111911115 A9111 12111 110d91 %g'g p112 p001A11q 01 A9110111 113110119 311111211 1n0q2 A110AA sp10119511011 '3'11 10 0/011 A1129N '51129119u1V 100d 101'Ap15qn5 p00} 2 9p1A01d 01 191119301 >110AA51119111u19Ao3 12901 11112 ‘91215 ‘1219p91 ‘A1111911113 '11529\ 10 1111101112 91q212d1u09 2 10 5d111215 1100; 31111119991 110 191 -19q 912 91d09d 100d 191119111111 9zA12112 01 9910119 19u1115u09 10 A109111 9111 9511 1129 91A 1911p12'1 31113— '1u17m171591 v 01 111311 mam sAv/nlv 1 mq 7613111101 911 01 5; 1; 1191101 240101121 94,1 [z uopsanb 995 ...
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This note was uploaded on 11/07/2010 for the course ECO 33358 taught by Professor Mathevet during the Fall '10 term at University of Texas at Austin.

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h3e4 solutions - 98 CHAPTER 4 Consumer Choice See Question...

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