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Unformatted text preview: e 6/8 1/22/2014 Assignme nt Pr int Vie w 10 B 3
Sco n e
0 1 2 3 4 5 6 7 8 9 10 M u f f in c. Are there any other bundles that Jennifer likes the same as the one mentioned in part (b)?
d. Are Jennifer's preferences complete? Yes Are they transitive? Yes Do they respect the MoreIsBetter Principle?
e. Can you draw Jennifer's indifference curves? No
f. Can you describe Jennifer's preferences with a utility function? No Explanation:
Jennifer prefers the bundle that has more muffins. So, she likes the bundle that has 4.1 muffins the most. Her
next best bundle is the one with 4 muffins. She likes the bundle that has 0 muffins the least. Relative to the
point (3.5 muffins, 4.5 scones), she prefers all bundles that have more than 3.5 muffins or 3.5 muffins, but more
http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 7/8 1/22/2014 Assignme nt Pr int Vie w than 4.5 scones. She cannot be indifferent between any two distinct bundles because one of the two bundles
must have more muffins and/or more scones. If one bundle has more muffins, she prefers that bundle. If both
bundles have the same number of muffins, then she prefers the bundle that has more scones. Since she
cannot be indifferent between any two distinct points, she does not have any indifference curves. As a
consequence, we cannot describe Jennifer's preferences with a utility function. http://e z to.mhe c loud.mc gr a w- hill.c om/hm.tpx? todo= pr intvie wSingle 8/8...
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This note was uploaded on 01/22/2014 for the course ECO 3352 taught by Professor Ax during the Fall '13 term at Troy.
- Fall '13