A.Suppose that Fiona likes cashews better than almonds and likes almonds better than walnuts. She likes pecans equally well as hazelnuts and prefers hazelnuts to almonds. Can we characterize Fiona’s preferences of being “complete”? Can we characterize them of being “transitive”? Justify your answer. B. “Pertaining to different good characteristics; it is possible to distinguish between three different types of indifference curves. One would be the typical negatively sloped convex function, a second would be a negatively sloped straight line, and a third would be an L-shaped function”. Examine the validity of this statement. Is it possible for the indifference curve to be positively sloped?
A.Suppose that Fiona likes cashews better than almonds and likes almonds better than walnuts. She likes pecans equally well as hazelnuts and prefers hazelnuts to almonds. Can we characterize Fiona’s preferences of being “complete”? Can we characterize them of being “transitive”? Justify your answer. B. “Pertaining to different good characteristics; it is possible to distinguish between three different types of indifference curves. One would be the typical negatively sloped convex function, a second would be a negatively sloped straight line, and a third would be an L-shaped function”. Examine the validity of this statement. Is it possible for the indifference curve to be positively sloped?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A.Suppose that Fiona likes cashews better than almonds and likes almonds better than walnuts. She likes pecans
equally well as hazelnuts and prefers hazelnuts to almonds.
Can we characterize Fiona’s preferences of being “complete”? Can we characterize them of being “transitive”?
Justify your answer.
B. “Pertaining to different good characteristics; it is possible to distinguish between three different types of
indifference curves. One would be the typical negatively sloped convex function, a second would be a negatively
sloped straight line, and a third would be an L-shaped function”.
Examine the validity of this statement. Is it possible for the indifference curve to be positively sloped?
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