2MicroProblem Set2Loyola - 1 EC302 - INTERMEDIATE...

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EC302 - INTERMEDIATE MICROECONOMICS Loyola University Spring Semester 2012 Problem Set 2 Discussion Date: February 20, 2012 Answer all questions succinctly and thoroughly. 1. Draw the indifference curves for the following individual’s preferences for hamburgers and Pepsi. a. Ms. H loves hamburgers, but hates Pepsi. She always prefers more hamburgers no matter how much Pepsi she has. b. Mr. D is indifferent between bundles of either three hamburgers or two Pepsis. His preferences do not change as she consumes more of either good. c. Ms. H eats one hamburger and washes it down with one Pepsi. She will not consume an additional order of hamburgers without more Pepsi. 2. Draw the indifference curves for the following individual’s preferences for spring rolls and noodles. a) Ms. H loves spring rolls, but hates noodles. She always prefers more spring rolls no matter how much noodles she has. b) Mr. D is indifferent between bundles of either three spring rolls or two noodles. His preferences do not change as she consumes more of either good. c) Ms. G eats one spring rolls and washes it down with one noodles. She will not consume an additional order of spring rolls with one more noodles. d) Mr. A loves spring rolls, but is allergic to noodles. If he drinks noodles he gets a sick stomach. 3. Ms. Thuy has a monthly income of $200 which she allocates among two goods: meat and potatoes. a)
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This note was uploaded on 03/18/2012 for the course ECON 201 taught by Professor Çakmak during the Spring '10 term at Middle East Technical University.

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2MicroProblem Set2Loyola - 1 EC302 - INTERMEDIATE...

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