Suppose Jennifer's preferences over bundles of muffins and scones are as follows. If bundle 1 has more muffins than bundle 2, she prefers bundle 1 to bundle 2, regardless of the number of scones in either. If the two bundles have the same number of muffins, she prefers the one with more scones.
a. How does Jennifer rank the following bundles?
i. 4 muffins, 6 scones
ii. 4.1 muffins, 0.5 scone
iii. 0 muffins, 100 scones
b. Consider the case where Jennifer has 3.5 muffins and 4.3 scones. Show on a graph all of the bundles she prefers to that one.

c. Are there any other bundles that Jennifer likes the same as the one mentioned in part (b)?
d. Are Jennifer's preferences complete? Are they transitive? Do they respect the More-Is-Better Principle?
e. Can you draw Jennifer's indifference curves? If yes, do so. If no, explain why not.
f. Can you describe Jennifer's preferences with a utility function? If yes, identify the function. If no, explain why not.

Transcribed Image Text:

10 B 2 Scone 4 0 1 23 45 8 78 9 10 Muffin