Basket A contains 5 apples and 1 orange. Basket B contains 1 apple and 5 oranges. Basket C contains 3

apples and 3 oranges. Assume throughout that tastes are monotonous

On Monday, Anne is offered a choice between basket A and C, and she chooses A. On Tuesday, she is

offered a choice between basket B and C, and she chooses B.

a)

Graph these baskets on a graph with apples on the horizontal and oranges on the vertical axis.

b)

If we assume that Anne's preferences on any given day satisfy a strict convexity assumption (averages

are strictly better than extremes), can we conclude that Anne's preferences have changed from Monday

to Tuesday?

c)

Suppose that Anne's preferences satisfy a weak convexity assumption (averages are at least as good as

extremes). Suppose also that her preferences have not changed from Monday to Tuesday. Can we

conclude anything about the precise shape of one of Anne's indifference curve