Each of the following consumers exhibits behavior that violates one of the basic assumptions of consumer preferences. The consumer that violates the transitivity assumption is: (17 points) A)Carls says he would rather watch a movie than go jogging. He also says that he would rather jog than go swimming. And then he specifies that he would rather swim than go see a movie. B)Alicia says she can watch two movies a week but she wouldn't see a third movie, even if she got paid to see it. C) Andrea says that she would rather ride a bike than go to the movies but she doesn't know if she likes to go swimming. D) None of the above 2BONUS: Daniel always gets three times more satisfaction when he consumes a chocolate ice cream than when he consumes an oreo cheesecake. Daniel's Marginal Rate of Substitution of ice cream for cheesecakes is (note: suppose the oreo cheesecakes are on the x-axis, and the chocolate ice creams are on the y-axis) (17 points) A)-1/3 B)1/3 C)-3 D)3 E)None of the above 3 Suppose Daniel derives profit from only two goods, cake (T) and donuts (D). The marginal utility that Daniel receives for the cake (UMGT) and for donuts (UMGD) are UMGT = D; and UMGD = T. Daniel has an income of $ 240 and the price of the cake (PT) and the donut (PD) is $ 3 each. What number of Donuts will maximize Daniel's utility given the information above? (17 points) A)0 B)24 C)40 D)60 E)None of the above 4 Which of the following would cause the gasoline supply curve to shift to the right? I. A significant increase in the price of public transport II. A significant increase in the price of cars III. A significant decrease in gasoline production costs (17 points) I only II only III only II and III only None of the above 5 The nominal price of long distance telephone service fell from 40 cents per minute in 1996 to 22 cents per minute in 1999, a decrease of 45% (18 cents / 40 cents). The consumer price index increased 10% during this period. What happened to the real price of the phone service? Immersive reader (17 points) The real price fell by 50% The real price increased by 50% The real price fell by 45% The information provided is not enough to know what happened to the real price None of the above