2. (30 points) True or False. Pick TWO of the following three claims, and assess whether they are true or false. Do not answer all three (if you do, I will count your two worst responses). Do not forget to explain your answer (just a "true" or "false" gives zero points). All the assumptions in class carries here. (a) The negative network externalities makes the demand more elastic. (b) Justin visited your company and you offered him two investment product. Product A promises that he will have $1515 at the end of the year. Product B is riskier: there is 50% chance he will be having $2000, and there is 50% chance that he will be end up with only $900. He will definitely choose product A. (c) If the indifference curves of a consumer are convex, then we can easily calculate the marginal rate of substitution and use the tangency condition to get the consumer's choice