Construct a representative indifference curve fore each of the following situations. Explain why each unconventional shape is related to a specific violation of the standard assumption about IC and/or preferences.
Construct a representative indifference curve fore each of the following
situations. Explain why each unconventional shape is related to a specific violation of the standard assumption about IC and/or preferences. (Note: Even though some of the goods described exist only in discrete quantities, draw the IC assuming the goods exist in continuous quantities). (3 points)
a) The goods are right gloves and left gloves — i) The consumer has two hands. ii) The consumer only has a left hand
b) The two goods are water and lobster tails. Eating more than a certain number of lobster tails makes the consumer sick. Other than that, the relationship between the two goods meets our standard assumptions. i) The consumer is free to discard lobster tails if that is in her best interest. ii) Every lobster tail in the bundle must be eaten.
c) The two goods are Coke and Pepsi. The consumer cannot tell the difference between the two soft drinks.
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