1.

A consumer with convex preferences

who is indifferent between the bundles
(5, 2) and (11, 6) will like the bundle (8,
4) at least as well as either of the first
two bundles. FALSE
2. Kaspars has an indifference curve with
equation x2 = 20 4x11/2. When Kaspars
is consuming the bundle (4, 16), his
marginal rate of substitution is .
FALSE
3. Damir buys 3 quarts of milk and 2
pounds of butter when milk sells for $2 a
quart and butter sells for $1 a pound.
brahim buys 2 quarts of milk and 3
pounds of butter at the same prices.
Damirs marginal rate of substitution
between milk and butter is greater than
brahims. FALSE