Suppose that you like buying shirts and shoes. Moreoever, whenever you have additional money to spend, you spend some on new shirts and some on new shoes. Which of the following statements would be true about you? Give reasons for your answers.

(a) If we drew an indierence curve for you with shoes on the horizontal axis and shirts on the vertical axis, it would be upward-sloping.

(b) Your preferences satisfy monotonicity.

(c) A straight line connecting any two points on your indierence curve

would lie above and to the right of your indierence curve.

2 (d) Your marginal rate of substitution of new shirts for new shoes is de-

creasing in the number of new shoes you have.