Practice Questions (Chapters 3: Preferences) EC270: Microeconomic Theory I Jennifer has indifference curves with the equation r2 - 20 -471. Assume F1 is drawn on the horizontal axis and r2 is drawn on the vertical axis. 7. What is the slope of Jennifer's indifference curve when her consumption bundle is (4, 11)? (2) - (b) 20 (c) -1 (d) -4 (c) -2 8. What is the slope of Jennifer's indifference curve when her consumption bundle is (16, 10)? (2) - (b) 20 ( c ) - 1 (d) -4 (c) -2 0. What is the slope of Jennifer's indifference curve when her consumption bundle is (1, 11)? (a) - (h) 20 ( c ) - 1 (d) -4 (") -2 10. If two goods (7, and r2) are both desirable and preferences are convex, then: (a) there must be a kink in the indifference curves. (b) indifference curves must be straight lines. (c) if two bundles are indifferent, then an average of the two bundles is worse than either one. (d) the marginal rate of substitution is constant along indifference curves. (e) None of the above