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2. Draw indifference curves that represent the following individuals preferences for the following goods: a. Annie dislikes roller coaster rides and prefers riding the Ferris wheel. b. Eric loves barbecue and dislikes wine. However, if he is served wine and barbecue, he will politely drink the wine. c. Eva insists on consuming exactly one cup of tea for every shawarma she eats.

2. Draw indifference curves that represent the following individuals preferences for the following goods: a. Annie dislikes roller coaster rides and prefers riding the Ferris wheel. b. Eric loves barbecue and dislikes wine. However, if he is served wine and barbecue, he will politely drink the wine. c. Eva insists on consuming exactly one cup of tea for every shawarma she eats.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
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Please help answer the no. 2 only. Much thanks 

1. llustrate in a supply/demand diagram how the equilibrium price and quantity will change if the following events occur. Provide a short summary after each diagram. a. Both demand and supply increase (change in D=change in S) b. Demand goes up while supply goes down; assuming that change in demand is greater. c. Supply rises and demands falls, assuming that change in supply is greater. 2. Draw indifference curves that represent the following individuals preferences for the following goods: a. Annie dislikes roller coaster rides and prefers riding the Ferris wheel. b. Eric loves barbecue and dislikes wine. However, if he is served wine and barbecue, he will politely drink the wine. c. Eva insists on consuming exactly one cup of tea for every shawarma she eats. 3. Which good would you expect to have a more elastic demand? Why? Choose one (1) only. a. Water or diamonds b. Insulin or nasal decongestant tablet c. Coke or beverages in general d. Holiday travel over the week or holiday travel over the year e. Salt or salmon 4. Tell whether the following goods will have an elastic or inelastic supply. a. Grapes b. Oil/fuel C. Rice
Transcribed Image Text:1. llustrate in a supply/demand diagram how the equilibrium price and quantity will change if the following events occur. Provide a short summary after each diagram. a. Both demand and supply increase (change in D=change in S) b. Demand goes up while supply goes down; assuming that change in demand is greater. c. Supply rises and demands falls, assuming that change in supply is greater. 2. Draw indifference curves that represent the following individuals preferences for the following goods: a. Annie dislikes roller coaster rides and prefers riding the Ferris wheel. b. Eric loves barbecue and dislikes wine. However, if he is served wine and barbecue, he will politely drink the wine. c. Eva insists on consuming exactly one cup of tea for every shawarma she eats. 3. Which good would you expect to have a more elastic demand? Why? Choose one (1) only. a. Water or diamonds b. Insulin or nasal decongestant tablet c. Coke or beverages in general d. Holiday travel over the week or holiday travel over the year e. Salt or salmon 4. Tell whether the following goods will have an elastic or inelastic supply. a. Grapes b. Oil/fuel C. Rice
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