Question

Consider preferences for left and right shoes.

a. Convex? Hint: Begin by drawing.

b. Monotonic? Hint: Begin by drawing.

c. Chilton misstated the monotonicity assumption Varian uses. He says the test is you’re better off with more of x1 and x2. My statement was you’re better off with more of x1 or x2. Do left-right shoe preferences satisfy my monotonicity assumption? What about Varian’s?

d. What can you say about MRS for these preferences?

Answer 1

so hann C )