Loose-leaf Microeconomics With Connect Access Card
Loose-leaf Microeconomics With Connect Access Card
2nd Edition
ISBN: 9780077716325
Author: B. Douglas Bernheim Lewis & Virginia Eaton Professor
Publisher: McGraw-Hill Education
Question
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Chapter 4, Problem 10P

(a)

To determine

Explain the consumer ‘J’ rank for bundles.

(b)

To determine

Derive the figure for all of the bundles.

(c)

To determine

Explain whether the consumer ‘J’s like the same bundles or not.

(d)

To determine

Explain whether the consumer ‘J’ preference is complete or not.

(d)

To determine

Explain Jennifer's indifference curves

(e)

To determine

Explain ‘J’s preferences with a utility function.

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Students have asked these similar questions
Suppose that Paul tells you that his optimal bundle is bundle B. Using this information, show in the above diagram all bundles that would use up exactly Paul’s weekly budget for hot drinks. Could Paul afford bundle E? Would he enjoy bundle E more or less than bundle B? Could Paul afford bundle F? Would he enjoy bundle F more or less than bundle B?
Lisa views pizzas and burritos as goods.  If she prefers a bundle of 4 burritos and 4 pizzas to a bundle of 4 burritos and 5 pizzas, which property of consumer preference is violated?  What change in the assumptions could lead a rational consumer to prefer the first bundle?
Suppose that Paul tells you that his optimal bundle is bundle B. i. Using this information, show in the above diagram all bundles that would use up exactly Paul’s weekly budget for hot drinks.ii. Could Paul afford bundle E?iii. Would he enjoy bundle E more or less than bundle B?iv. Could Paul afford bundle F?v. Would he enjoy bundle F more or less than bundle B?
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