Question

Suppose that a consumer's preferences follow the "basic properties of consumer's preferences" and that she has "nice indifference curves" (meaning: "convex indifference curves"). Which of the following sentences are True/False?

For each statement, consider that ϵ > 0:

1 The consumer is indifferent between ( 100 + ϵ , 25 ) and ( 100 , 25 )                            [ Select ]                       ["True", "False"]      

2 The consumer strictly prefers ( 100 + ϵ , 25 ) to ( 100 , 25 )                            [ Select ]                       ["True", "False"]      

3 The consumer is indifferent between ( 100 , 25 + ϵ ) a n d ( 100 + ϵ , 25 )                            [ Select ]                       ["False", "True"]      

4 The consumer is indifferent between ( 100 + ϵ , 25 ) a n d ( 25 , 100 + ϵ )                            [ Select ]                       ["False", "True"]      

5 The consumer weakly prefers ( 100 + ϵ , 25 ) t o ( 100 , 25 )                            [ Select ]                       ["True", "False"]      

6 If the consumer is indifferent between ( 100 , 25 ) a n d ( 25 , 100 )then the bundle ( 85 , 45 )is weakly preferred to ( 100 , 25 ) a n d ( 25 , 100 )                            [ Select ]                       ["False", "True"]      

Answer 1