PLEASE SHOW YOUR WORKING:

1. If the utility for two goods x and y is measured as U=Min {x, y}, then please draw the map of the indifferent curves that best represent the preferences. Explain the economic meaning of the shape of the indifferent curves. Provide real life examples of x and y.
2. Suppose Joe spends all his money on bread and books. When the price of bread decreases, analyze the substitution effect and income effect on bread (draw the graph and explain). Please show your analysis of the two effects on books as well.
3. Ella lives on chocolate and salads. The price of chocolate is $1 each bag and the price of salads is $2 each. Ella allows herself to spend no more than $11 a day on food. She also restricts her consumption to 6,500 calories per day. There are 1,500 calories in a bag of chocolate and 500 calories in salad. If she spends her entire money budget each day and consumes no more calories than 6,500 calories, please draw the graph with chocolate on the vertical axis and salads on the horizontal axis. Find the bundles of two goods that she can consume and explain why.
4. Draw the graphs to show whether a map of concave to the origin indifferent curves that parallel to each other satisfies the three assumptions (transitivity, completeness and more is better). Explain why or why not.