HW1 - 3 1 liter Rum bottle with 30 alcohol 1 liter of...

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Economics 1110 Intermediate Microeconomics Spring 2011 Homework 1: Indi/erence Curves Instructors: Dror Brennerand Ryan Miller The purpose of this homework is to transform descriptions of preferences into indi/erence curves. This is the °rst step in a sequence that will allow you to understand economic modelling of the consumer problem when she solves for her optimal consumption bundle. In each of the following questions you are asked to draw a map of indi/erence curves that describes the preferences of the individual. Whenever possible assume that preferences are well behaved. Draw the °rst good on the horizontal axis. Indicate with an arrow the direction in which utility increases. Homework is due in class: Monday 2/7 1. Right hand glove and left hand glove. The individual has utility only from pairs of gloves. 2. Like (1) , but the individual hurt his left hand and has no use for left hand gloves.
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Unformatted text preview: 3. 1 liter Rum bottle with 30% alcohol, 1 liter of Tequila bottle with 40% alcohol. Individuals care only about the level of alcohol. 4. Temperature and humidity. The ideal combination for individual is 22 o and 30% humidity. (Hint: Bliss Point) 5. Radioactive waste and air pollution. Individual dislikes both. 6. Waste and food. Individual dislikes waste and likes food. 7. Temperature and food. The ideal temperature is 25 8. Chocolate and tickets for last week movie. 9. Two products X and Y . Individuals are satiated from consuming more than 10 units of Y 10. Food and entertainment. Individuals enjoy both but need at least 5 units of food. 11. (optional): There are two commodities - fresh air and garbage. Fresh air is a good and garbage is a bad. Rede&ne the commodities so that the prefernce relation becomes monotoe....
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