PLEASE EXPLAIN STEP BY STEP WITH GRAPH 1-2-a. List and briefly explain the main assumptions we make on consumer preferences(one sentence of explanation for each).b.For each assumption, provide an example consumer preference that does notsatisfy the assumption (you may illustrate your answers by drawing graphs).Consider that there are two goods, good X and good Y.a) Give the definition of "indifference curve" (briefly in one sentence).b) Is it possible for two indifference curves to intersect at a certain consumptionbundle in (X, Y) plane? If yes, explain and give an example. If not, explainand provide a reason for why it is not possible.

There are three major assumptions about consumer preferences which can also be considered as the…

a. List and briefly explain the main assumptions we make on consumer preferences (one sentence of explanation for each). b. For each assumption, provide an example consumer preference that does not satisfy the assumption (you may illustrate your answers by drawing graphs).

a. List and briefly explain the main assumptions we make on consumer preferences (one sentence of explanation for each). b. For each assumption, provide an example consumer preference that does not satisfy the assumption (you may illustrate your answers by drawing graphs).

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.2P

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Question

PLEASE EXPLAIN STEP BY STEP WITH GRAPH

1-
2-
a. List and briefly explain the main assumptions we make on consumer preferences
(one sentence of explanation for each).
b.
For each assumption, provide an example consumer preference that does not
satisfy the assumption (you may illustrate your answers by drawing graphs).
Consider that there are two goods, good X and good Y.
a) Give the definition of "indifference curve" (briefly in one sentence).
b) Is it possible for two indifference curves to intersect at a certain consumption
bundle in (X, Y) plane? If yes, explain and give an example. If not, explain
and provide a reason for why it is not possible.

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