Good Faith Effort 6 -- Preferences

  1. List and explain the three basic assumptions economists make when developing a model of consumer behavior.
  2.  

  3. Explain why two indifference curves cannot intersect. Illustrate your explanation with a graph showing a consumer's indifference curves.

Due 10 September.


Note: In order to receive a "credit" grade, your written responses to the questions must be submitted by you personally (not by some other student) by the start of class on the day it is due.

 

Adapted from Questions for Review #3, Chapter 3, Robert Pindyck and Daniel Rubinfeld, Microeconomics, 4th edition, Prentice Hall, Upper Saddle River, NJ, 1998.