True or False

For each of the following statements, indicate if they are True or False. Justify your

answer.

1. (4 points) Jake and Leslie are utility maximizing consumers. Given their income and market prices, Leslie chooses a bundle that gives her a utility U Lash-e : 50, while Jake chooses a bundle that gives him a utility U Jake = 40. Therefore, we know that Jake is unhappier than Leslie. 2. (4 points) Anne's utility function for movies (m) and food (f) is given by U (m, f ) : 1 (mm | f\")3, with or > 0. Anne's preferences satisfy the principle of diminishing marginal rate of substitution for any value of oz. 3. (4 points) John's utility function of goods 0. and b is given by U[a, b) = 0.2 | 52. John's preference satisfy completeness, transitivity and nonsatiation principles. 4. (4 points) Mary's preferences for course 14 (e) and course 15 (m) classes can be represented by U (c, m) = 28 | m. Given her preferences, Mary is willing to drop one course 14 class for two course 15 classes