1. If the utility function u(T1, 12) - min (T1, 12} represents a consumer's preferences, then another utility function, U(T1, 12) - min {T1, 12} + 2, also represents her preferences True. 2. A consumer considers apple pie and ice cream perfect complements. Then, his preferences are homothetic True. 3. If marginal products are declining this means that the underlying technology exhibits decreasing returns to scale. False. 4. Carrie and Don both have Cobb-Douglas preferences over corn (good 1) and dairy (good 2). Carrie's utility function is rir, " and Don's 3172 re-". If Carrie spends a higher proportion of her income on corn than Don does, then c > d. True. 5. At any output level the short run average total cost curve and the short run average variable cost curve must slope in the same direction. 6. For a Giffen good, the negative income effect dominates the positive substitution effect as the price of the good decreases. True. 7. If preferences were given by u(21. r2 ) = rir2, then both goods must be normal goods. True. This is a Cobb-Douglas utility function. The demand functions for the two goods are