BuyFind

Economics:

10th Edition
BOYES + 1 other
Publisher: Cengage Learning
ISBN: 9781285859460
BuyFind

Economics:

10th Edition
BOYES + 1 other
Publisher: Cengage Learning
ISBN: 9781285859460

Solutions

Chapter
Section
Chapter 21A, Problem 1E
Textbook Problem

Use these combinations for parts a and b:

Chapter 21A, Problem 1E, Use these combinations for parts a and b:
       
1f more is preferred to less, which combinations

  1. 1f more is preferred to less, which combinations are clearly preferred to other combinations? Rank the combinations in the order of preference.
  2. b. Some clothes-food combinations cannot be clearly ranked. Why not?

Expert Solution
To determine

(a)

To rank: the given combinations in the order of preference.

Explanation of Solution

1st preference is "I" as both goods are more.

2nd preference is F and H, as 5 goods in total for each combination.

3rd preference is C, E and G, as 4 goods in each combination.

4th preference is B and D as 3 goods in total for each combination.

5th preference is A as lowest combination of goods is given.

Expert Solution
To determine

(b)

Combinations which cannot be ranked along with the reason.

Explanation of Solution

2nd preference: F and H, 5 goods are given for each combination.

3rd preference: C, E and G, 4 goods are given for each combination.

4th preference: B and D, 3 goods are given for each combination.

A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.

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