A. True, False, Uncertain and Explain: determine whether the statement is true, false or uncertain and explain your reasoning â you only earn points for your explanation. 1. If preferences are convex, the set of points at least as good as any given point is a convex set. 2. If preferences are strictly convex, the set of points âno better thanâ any given point is a convex set. 3. If a consumer has strictly convex preferences over two goods and she is indifferent between bundle A given by (4, 6) and bundle B given by (2, 8), then she prefers bundle C given by (3, 7) over either bundle A or bundle B. 4. If a consumer has preferences over two "bads" then these preferences cannot be convex. 5. If apples (a good) are on the horizontal axis and dirty socks (a bad) are on the vertical axis then the indifference curves that represent convex preferences over these two items is upward sloping and flattens out as moving from left to right. 6. If preferences are not monotonic then they cannot be transitive
A. True, False, Uncertain and Explain: determine whether the statement is true, false or uncertain and explain your reasoning â you only earn points for your explanation. 1. If preferences are convex, the set of points at least as good as any given point is a convex set. 2. If preferences are strictly convex, the set of points âno better thanâ any given point is a convex set. 3. If a consumer has strictly convex preferences over two goods and she is indifferent between bundle A given by (4, 6) and bundle B given by (2, 8), then she prefers bundle C given by (3, 7) over either bundle A or bundle B. 4. If a consumer has preferences over two "bads" then these preferences cannot be convex. 5. If apples (a good) are on the horizontal axis and dirty socks (a bad) are on the vertical axis then the indifference curves that represent convex preferences over these two items is upward sloping and flattens out as moving from left to right. 6. If preferences are not monotonic then they cannot be transitive
