Randy Ratpack hates studying both economics and history. The more time he spends studying either subject, the less happy he is. But Randy has strictly convex preferences. (a) Sketch an indifference curve for Randy where the two commodities are hours per week spent studying economics and hours per week spent studying history. Will the slope of an indifference curve be positive or negative? (b) Do Randy’s indifference curves get steeper or flatter as you move from left to right along one of them?

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Before understanding what is preference and utility analysis, it is very important to understand the terms preference and utility separately.