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For each of the scenarios below, demonstrate your understanding of the axioms A1- A6 on the consumer's preference ranking by determining which, if any, of
For each of the scenarios below, demonstrate your understanding of the axioms A1- A6 on the consumer's preference ranking by determining which, if any, of the assumptions of consumer behavior is violated. Briefly explain. a. Wile E. Coyote particularly likes Road Runners (B and the number of these he catches (and consumes!) primarily determines his utility. However, the Coyote also likes Cactus Wine (W) For a given value of R, say R1, increases in W increase the Coyote's utility, but even just slightly more Road Runners than R1 is preferred to R1, no matter how much Cactus Wine the Coyote has. b. Lucy the Golden Retriever loves to play. She likes tennis balls better than soccer balls and she like soccer balls better than footballs. She also likes footballs better than golf balls. She is indifferent between softballs and baseballs and likes baseballs just as well as footballs. She is fairly certain that she prefers either basketballs or soccer balls, but she just can't make up her mind which is which. For each of the scenarios below, demonstrate your understanding of the axioms A1- A6 on the consumer's preference ranking by determining which, if any, of the assumptions of consumer behavior is violated. Briefly explain. a. Wile E. Coyote particularly likes Road Runners (B and the number of these he catches (and consumes!) primarily determines his utility. However, the Coyote also likes Cactus Wine (W) For a given value of R, say R1, increases in W increase the Coyote's utility, but even just slightly more Road Runners than R1 is preferred to R1, no matter how much Cactus Wine the Coyote has. b. Lucy the Golden Retriever loves to play. She likes tennis balls better than soccer balls and she like soccer balls better than footballs. She also likes footballs better than golf balls. She is indifferent between softballs and baseballs and likes baseballs just as well as footballs. She is fairly certain that she prefers either basketballs or soccer balls, but she just can't make up her mind which is which
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