Problem
Let's drop the assumption of non-satiation. This allows us to represent a wider variety of preferences. Consider our two goods: movies and concerts. Draw indifference curves that represent the preferences of each of the following people. Define the axes as "concerts per month" and "movies per month." For each graph, label the direction of preference with an arrow.
Example: YoYo Ma likes concerts but doesn't care whether or not he goes to movies. His indifference curves look like: University of California Economics 100A Department of Economics Professor K Train Page 2 of 5.
1) Ruth like movies but dislikes concerts.
2) Carlos dislikes both movies and concerts (he likes reading instead). He dislikes each movie more the more movies he goes to. He dislikes each concert the same, no matter how many he goes to.
3) Sanjay also dislikes both movies and concerts and dislikes each concert the same no matter how many concerts he goes to. But, unlike Carlos, he dislikes each movie less the more movies he goes to.
4) Marie likes concerts up until she goes to three per month and then starts to dislike extra ones. However, she likes movies no matter how many she sees.
5) Andrea likes it best when she goes to three movies and two concerts each month. If she deviates from these most-preferred amounts, by either going to more movies/concerts or to fewer, then she is less happy. The amount by which she is dissatisfied increases by the amount by which she deviates, either more or less, from her most-preferred quantities.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.