2. Preferences:a. Suppose Wendy consumes 10 sandwiches and 10 cups of coffee over the course of a week.Her utility at the end of the week is equal to10. Now suppose Amanda consumes the same bundle, but her utility at theend of the week is 20. Can we say that Amanda is twice as happy as Wendy?Why or why not. b. Alex prefers 3 slices of cake to 4 slices,4 slices of cake to 5 slices, and 3 slices of cake to 5 slices. What is so strange about Alex? Are Alex's preferences transitive? Is Alex an irrational consumer? Explain your answers briefly.

2. Preferences:a. Suppose Wendy consumes 10 sandwiches and 10 cups of coffee over the course of a week.Her utility at the end of the week is equal to10. Now suppose Amanda consumes the same bundle, but her utility at theend of the week is 20. Can we say that Amanda is twice as happy as Wendy?Why or why not. b. Alex prefers 3 slices of cake to 4 slices,4 slices of cake to 5 slices, and 3 slices of cake to 5 slices. What is so strange about Alex? Are Alex's preferences transitive? Is Alex an irrational consumer? Explain your answers briefly.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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