2. Draw some indifference curves to represent the following preferences.(Please draw at least two indifference curves in one graph and specify which indifference curve has bundles that are more preferable)

   (a) [2 points] Alex likes both cake and smoothie. For both the commodity, he thinks that the more, the better. And he thinks a piece of cake is as good as a glass of smoothie.(b)Bobby likes chocolate but he doesn’t care about ice cream. And he thinks that the more chocolate he gets, the happier he is. (c) Claire likes pizza but hates fruits. The more pizza she gets, the happier she is. But eating more fruits reduces her happiness. However, when she has to eat some fruits, she would be of the same level of happiness if she is compensated with several pizzas.

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Solution For a Alexs indifference curves would be upward sloping straight lin... View the full answer