Chapter Tor 2i] Consumer Choice 3. Appendix \"C" PredClsss and In- Class Activities Packet Hamel ID. Number: Section: Date: Part 3. Discussion Questions and Problems 1. Is it possible to get so much of a good that it turns into a bacl'EI If so, give an example 2. Describe one everyday example of you or someone else making an interpersonal utility comparison. 3. Is there a logical link between the law of demand and the assumption that individuals seek to maximize utility? {Hint Think of how the condition for consumer equilibrium can be used to express the inverse relationship between price and quantity demanded] 4. List live sets of two goods [each set is composed of two goods; for example. diamonds and water is one set: where the good with the greater value in use has a lower value in exchange than does the good with lhe lower I.Ialue in use. 5. Do you think people with high IDs are in consumer equilibrium [equate marginal utilities per dollar} more often than people with low le? Iillfhy or why riot\"?I 6. What is lhe endowment effect?I T. If we take $1 away from a rich person and give it to a poor person, lhe rich person loses less ulility than the poor person gains. Comment 8. How is buying a house in a good school district like sending children to a private school? El. What is the difference between an Indifference curve {lCiand an Indifference rhapillvl}? [Appendix I*C" Question]. ll]. What is a Consumer Equilibrium {CE} or Uptimurn 8. How do we achieve CE in the context of le tit Budget Constraint 1' [Appendix \"C" Question]