2. Joe also has preferences over dogs and cats. His preferences are satiable. He has circular indifference curves and a "bliss point" at some bundle with a positive number of both dogs and cats. These preferences effectively make dogs and cats "goods" at some quantities (more is better) and "bads" at other quantities (more is worse). Ignore the fact that, in reality, all dogs and cats are always good.

(a) On a neat and well-labeled graph, choose a location for Joe's bliss point and sketch at least two of Joe's indifference curves.

(b) On your graph from part (a), indicate the following four regions: (i) where dogs and cats are both goods, (ii) where dogs and cats are both bads, (iii) where dogs are goods and cats are bads, and (iv) where dogs are bads and cats are goods.