Nina is addicted to pills. Suppose we want to model her tastes over pills and other goods.

Let's make the following assumptions about Nina's preferences.

- A bundle includes two goods: "number of pills" and "dollars spent on other consumption"

- For any two bundles A and B, Nina will always prefer bundle A, if it contains more pills than Bundle B.

- If Bundles A and B contain the same number of pills, Nina will prefer A to B, if A contains more dollars to spend on other consumption than B.

(a.) Illustrate an arbitrary bundle A on a graph with "number of pills" on the horizontal axis and "dollars spent on other consumption" on the vertical axis. Indicate all the bundles that are preferred to bundle A.

(b.) On a new graph indicate all bundles that are less preferred than bundle A.

(c.) Rethink your graphs above. Is there any bundle that Nina would say gives her the same utility as bundle A. Can you identify two bundles that Nina is indifferent between?

(d.) Do Nina's preferences conform to the basic assumptions of consumer preferences?