Consider a consumer with preferences defined over x and y. Demonstrate that it is possible they would choose to consume some of both commodities when their income is I but would choose to consume only x when their income is I'> I. (Remember: if you can draw it without violating any of the basic assumptions on preferences, it could happen.)

Consider a consumer with preferences defined over x and y. Demonstrate that it is possible they would choose to consume some of both commodities when their income is I but would choose to consume only x when their income is I'> I. (Remember: if you can draw it without violating any of the basic assumptions on preferences, it could happen.)

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5CQQ

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4. a. Consider a consumer with preferences defined over x and y. Demonstrate that it is possible theywould choose to consume some of both commodities when their income is I but would choose toconsume only x when their income is I’ > I. (Remember: if you can draw it without violating anyof the basic assumptions on preferences, it could happen.) b. Conversely, demonstrate that it is possible they would choose to consume only x when theirincome is I but would choose to consume x and y when their income is I’ > I.c. Finally, show it is possible that they would choose to consume only y when their income is I butwould choose to consume only x when their income is I’ > I.
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Please answer D