微观经济学第八版课后习题答案第三章

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1、Chapter3ConsumerBehaviorQuestionsforReview1.Whatarethefourbasicassumptionsaboutindividualpreferences?Explainthesignificanceormeaningofeach.(1)Preferencesarecomplete:thismeansthattheconsumerisabletocompareandrankallpossiblebasketsofgoodsandservices.(2)Preferencesaretransitive:t

2、hismeansthatpreferencesareconsistent,inthesensethatifbundleAispreferredtobundleBandbundleBispreferredtobundleC,thenbundleAispreferredtobundleC.(3)Moreispreferredtoless:thismeansthatallgoodsaredesirable,andthattheconsumeralwayspreferstohavemoreofeachgood.(4)Diminishingmarginalra

3、teofsubstitution:thismeansthatindifferencecurvesareconvex,andthattheslopeoftheindifferencecurveincreases(becomeslessnegative)aswemovedownalongthecurve.Asaconsumermovesdownalongherindifferencecurvesheiswillingtogiveupfewerunitsofthegoodontheverticalaxisinexchangeforonemoreunitof

4、thegoodonthehorizontalaxis.Thisassumptionalsomeansthatbalancedmarketbasketsaregenerallypreferredtobasketsthathavealotofonegoodandverylittleoftheothergood.2.Canasetofindifferencecurvesbeupwardsloping?Ifso,whatwouldthistellyouaboutthetwogoods?Asetofindifferencecurvescanbeupwardsl

5、opingifweviolateassumptionnumberthree:moreispreferredtoless.Whenasetofindifferencecurvesisupwardsloping,itmeansoneofthegoodsisa“bad”sothattheconsumerpreferslessofthatgoodratherthanmore.Thepositiveslopemeansthattheconsumerwillacceptmoreofthebadonlyifhealsoreceivesmoreoftheotherg

6、oodinreturn.Aswemoveupalongtheindifferencecurvetheconsumerhasmoreofthegoodhelikes,andalsomoreofthegoodhedoesnotlike.3.Explainwhytwoindifferencecurvescannotintersect.ThefigurebelowshowstwoindifferencecurvesintersectingatpointA.Weknowfromthedefinitionofanindifferencecurvethatthec

7、onsumerhasthesamelevelofutilityforeverybundleofgoodsthatliesonthegivencurve.Inthiscase,theconsumerisindifferentbetweenbundlesAandBbecausetheybothlieonindifferencecurveU1.Similarly,theconsumerisindifferentbetweenbundlesAandCbecausetheybothlieonindifferencecurveU2.Bythetransitivi

8、tyofpreferencesthisconsumershouldalsobeindifferentbetw