1. Consider the following four bundles of Food and Clothing: Bundle Food Clothing B 15 6 C 10 8 Bundles A and B are on the same indifference curve. If preferences are complete, transitive, monotonic and convex, then: a. C is preferred to both A and B. b. B is preferred to D. c. C is on the same indifference curve as A and B. d. A is preferred to B. e. None of these are correct. 2. Consider the following indifference curves for Adam, Ben, Cara, and Doug. Which of the following statements is necessarily FALSE? Y Y Y IcCana IcAdam In Ben IC Doug X X X X a. Adam likes Y and is neutral towards X. b. Ben always likes X. At first, he likes Y. However, each additional unit of Y isn't as good as the last and eventually he starts to dislike Y. c. Cara likes Y and dislikes X. For each additional unit of X she consumes she needs to receive decreasing amounts of Y to remain as well off. d. Doug dislikes both X and Y and is willing to trade less and less of one good for each additional unit of the other