Musashi likes both soda and ice cream. Assume that the \"more is better\" princi
ID: 1204485 • Letter: M
Question
Musashi likes both soda and ice cream. Assume that the "more is better" principle applies to Musashi; that is, he would always prefer to consume more of either good, holding the consumption of the other good constant. (Using the terminology of preferences, this means you assume that his preferences are monotonic) The points on Figure 1 represent combinations of ice cream and soda that Musashi might choose to consume. Figure 2 shows the same points as Figure 1, but it also shows some of Musashi's indifference curves: t_1, t_2 and t_3. These curves show more information about Musashi's preferences than Figure 1. Complete the following table by indicating which bundles Musashi strictly prefers to H given only the information in each figure. Indicate whether each of the following statements is true or false given the previous graphs.Explanation / Answer
Strictly Prefers to H
Figure 1 D
Figure 2 D and E
1 False
2 TRUE
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