EBK MINDTAP ECONOMICS FOR BOYES/MELVIN'
10th Edition
ISBN: 9781305387614
Author: MELVIN
Publisher: VST
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Question
Chapter 21A, Problem 1E
To determine
(a)
To rank: the given combinations in the order of preference.
Expert Solution
Explanation of Solution
1st preference is "I" as both goods are more.
2nd preference is F and H, as 5 goods in total for each combination.
3rd preference is C, E and G, as 4 goods in each combination.
4th preference is B and D as 3 goods in total for each combination.
5th preference is A as lowest combination of goods is given.
To determine
(b)
Combinations which cannot be ranked along with the reason.
Expert Solution
Explanation of Solution
2nd preference: F and H, 5 goods are given for each combination.
3rd preference: C, E and G, 4 goods are given for each combination.
4th preference: B and D, 3 goods are given for each combination.
A consumer is indifferent for the respective combinations in each preference as there is no information given about price and utility.
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