Microeconomics: Theory and Applications with Calculus, 4e

Exercises

All exercises are available on MyEconLab; ${*}^{}=\text{Answer}$* = answer appears at the back of this book ; $\mathbf{\text{M}}=\mathit{\text{mathematical}}$M = mathematical problem.

1. Preferences 

1. 1.1 Explain why economists assume that the more-is-better property holds and describe how these explanations relate to the results in the Application “You Can’t Have Too Much Money.”

2. 1.2 Can an indifference curve be downward sloping in one section, but then bend backward so that it forms a “hook” at the end of the indifference curve? (Hint: Look at Solved Problem 3.1 .)

3. 1.3 Give as many reasons as you can why we believe that indifference curves are convex and explain.

4. 1.4 Don is altruistic. Show the possible shape of his indifference curves between charitable contributions and all ...