4. a. Consider a consumer with preferences defined over x and y. Demonstrate that it is possible they would choose to consume some of both commodities when their income is I but would choose to consume only x when their income is I’ > I. (Remember: if you can draw it without violating any of the basic assumptions on preferences, it could happen.) b. Conversely, demonstrate that it is possible they would choose to consume only x when their income is I but would choose to consume x and y when their income is I’ > I. c. Finally, show it is possible that they would choose to consume only y when their income is I but would choose to consume only x when their income is I’ > I.
4. a. Consider a consumer with preferences defined over x and y. Demonstrate that it is possible they would choose to consume some of both commodities when their income is I but would choose to consume only x when their income is I’ > I. (Remember: if you can draw it without violating any of the basic assumptions on preferences, it could happen.) b. Conversely, demonstrate that it is possible they would choose to consume only x when their income is I but would choose to consume x and y when their income is I’ > I. c. Finally, show it is possible that they would choose to consume only y when their income is I but would choose to consume only x when their income is I’ > I.
Chapter6: Demand Relationships Among Goods
Section: Chapter Questions
Problem 6.9P
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4. a. Consider a consumer with preferences defined over x and y. Demonstrate that it is possible they
would choose to consume some of both commodities when their income is I but would choose to
consume only x when their income is I’ > I. (Remember: if you can draw it without violating any
of the basic assumptions on preferences, it could happen.)
b. Conversely, demonstrate that it is possible they would choose to consume only x when their
income is I but would choose to consume x and y when their income is I’ > I.
c. Finally, show it is possible that they would choose to consume only y when their income is I but
would choose to consume only x when their income is I’ > I.
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