A consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each of the following scenarios, identify which, if any, of the standard assumptions of preferences are violated. (a) The consumer will never eat more than ten kilograms of carrots per day. (b) The consumer cares only about the total weight of the two vegetables consumed, and always prefers more to less. (c) The consumer cares only about the product of the respective weights of the two vegetables consumed, and always prefers a greater product to a lesser one.

A consumer has preferences over two goods, carrots and turnips, each measured in kilograms. For each of the following scenarios, identify which, if any, of the standard assumptions of preferences are violated. (a) The consumer will never eat more than ten kilograms of carrots per day. (b) The consumer cares only about the total weight of the two vegetables consumed, and always prefers more to less. (c) The consumer cares only about the product of the respective weights of the two vegetables consumed, and always prefers a greater product to a lesser one.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.3P

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