1. Sketch the indifference curves consistent with the following statements. Additionally, indicate which, if any of our standard assumptions about individual preferences are violated.
a) When choosing between bundles of beer and pizza, I always look first at the amount of pizza and choose the bundle with the largest amount of pizza. If any two bundles have the same amount of pizza, then I choose the bundle with the most beer.
b) I like to have two different ties to wear with each shirt I have.
2. Sketch the indifference curves consistent with the following statements. Additionally, indicate which, if any of our standard assumptions about individual preferences are violated.
a) For me, broccoli and green beans are perfect substitutes.
b) I like my peanut butter and jelly sandwiches to be made in a very precise way. In particular, I like two knife spreads of peanut butter to each knife spread of jelly.