Economics questions

1. Jon is always willing to trade one can of Coke for one can of Sprite, or one can of Sprite for one can of Coke. a. What can you say about J on's marginal rate of substitution?| 1). Draw a set of indifference curves for Jon. c. Draw two budget lines with different slopes and illustrate the satisfaction maximizing choice. What conclusion can you draw? 3. The price of computers has fallen substantially over the past two decades. Use this drop in price to explain Why the Consumer Price Index is likely to overstate substantially the cost-ofliving index for individuals who use computers intensively. 5. Based on his preferences, Bill is willing to trade 4 movie tickets for 1 ticket to a basketball game. If movie tickets cost $8 each and a ticket to the basketball game costs $40, should Bill make the trade? Why or why not? T. Drav;r indi'erence curves that represent the following individuals\" preferences for hamburgers and soft drinks. Indicate the direction in which the individuals' satisfaction (or utility) is increasing. a. Joe has convex preferences and dislikes both hamburgers and soft drinks. b. Jane loves hamburgers and dislikes soft drinks. If she is served a soft drink, she will pour it down the drain rather than drink it. c. Bob loves hamburgers and dislikes soft drinks. If he is served a soft drink, he will drink it to be polite. d. Molly loves hamburgers and soft drinks, but insists on consuming exactly one soft drink for every tvvo hamburgers that she eats. e. Bill likes hamburgers, but neither likes nor dislikes soft drinks. f. Mary always gets tvvice as much satisfaction from an extra hamburger as she does from an extra soft drink.