Question

#2

b 2. Draw indifference curves that represent the follow- ing individuals' preferences for hamburgers and soft drinks. Indicate the direction in which the individuals' satisfaction (or utility) is increasing. a. Joe has convex indifference curves and dislikes both hamburgers and soft drinks. b. Jane loves hamburgers and dislikes soft drinks. If she is served a soft drink, she will pour it down the drain rather than drink it. c. Bob loves hamburgers and dislikes soft drinks. If he is served a soft drink, he will drink it to be polite. d. Molly loves hamburgers and soft drinks, but insists on consuming exactly one soft drink for every two hamburgers that she eats. e. Bill likes hamburgers, but neither likes nor dislikes soft drinks. f. Mary always gets twice as much satisfaction from an extra hamburger as she does from an extra soft drink. тет

Answer 1

V AS Joe has conver in difference cuves and dislikes both hambungus and soft drinks, here to Joe both Fee hamburgus (h) and soft drinks (S) are bads, ut or bad commodity and both a marginal utility of 2 ham bingus and soft drinks are negative a Mool id at i aniré diw od fine the ability fuction is lod of an!! - Warulhys 0) * mot both a marginal utility of h ire. mun 2o and or marginal butlity of si.c. mus 2o . hence, the slope of the indifsis wance Care 1.6.2 mon o dw 9 MUS 3 ne voit Jouls Hince on diftuence nemue will be a positively sloped and so will be conven towards the origin, here, as he dislikes, both ham bungus and soft drinks, indiffuance. (mry towards the origin, gigy nem hig har utlity si cheat oil om Not os to softdring higun ulity Hun bringe Scanned with CamScanner

Jane love houmbingus and dislikes softau drinks Hue the marginal utility of ham bungu is positive i.e. Mundo And as soft drink is a neutral good to us Jane because she or can pour lit down the drink freely, hence marginal litlity of drink will be Zuoiala on jie MUS=0 Utlity as I Now, if we place hamburger on the horizontal 1 Anis and own soft drinks on the vital in a Anis, then the slope of the indiftuence Cinve will be dilt Muu muu 2 - MUSIC Hunce the indiftuence Quic will be a Straight line parallel to the untical anis and right wand. Shilst ov indiftuence te Cuiver represuts higher utility and sant consumption of Sobit drink remains same. Soft drink 26 Ice Swowy pod okres os Dit la i opr e mili spousta ( e) ou N 2840 Land han bruget Scanned with CamScanner

77. TIIMI & Bob loves hamburgers and dislikes soft an drinks and it he is saved a soft drink. the will drink it to be polite nen las 1. Znow and low & M. Un Hue to Bob soft drink is a bad commodity and marginal utility of soft drinks bomis will be less than En 0:: And lansemuno ime O NUM im Hince slopes on 2.0 UN MUSA I and hence the in diftuence CMUC will be a f negatively sloped and more ham bungas and I fewn drinks will enraance his bad Woul utility and was they indiftuence Cover will be in clined towards the goodis welommodity lie CamScanner towards ham bungh's alpi

JUHI. - soft drinks من زارا لن higher utlity x harbingas To Molly love hown bungus and dislites soft drinks. et te is soft drinks and insists on consurning I enactly one soft drink for every two hombingus. I that she eats. I Hace to Molly ham bungus and soft drinks are Pu feet complements, and hen utility fuction - here U= min a=2 ang bs) and b= 1 - Hace ut min (ah, s - Now, he will consume ham bungus and soft drinks on 211 rato. hance her indifference cure will be L Shaped and her Consumption will always be in 2. 1 rato. CamScanner

soft drinks out HH I 10I to love and evol ham bugus dem o 2 Scalañed, with CamScanner Yoel O INONIANS