Problem 1. Consider two goods food (f) and water (w). Measure the amount of food on the horizontal axis in your graphs for following. If w w 0 , Ann only cares about the amount of water that she consumes (more is better) and she is indifferent to food. If w > w0 , Ann only cares about the amount of food that she consumes (more is better), she is indifferent to water, and these bundles are all preferred to those with w w 0 .

1. Show some indifference curves (at least seven), all with plausible utility numbers, in a graph that accurately expresses Ann's preferences. Make sure that your graph shows very clearly what is happening with the indifference curves when w = w 0 , and for bundles in the neighborhood of w = w 0 .

2. In two separate diagrams, show the "weakly preferred set" to the two following bundles:

f = 8, w = 3, and w 0 > 3

f = 4, w = 9, and w 0 < 3