Answer to Question #324282 in Microeconomics for Gigi

Question

Use appropriate examples to discuss three critical assumptions about the properties of consumers’

preferences.

Answer 1

The three key points about preferences and indifference curves are:

1. More is better implies indifference curves are downward sloping.
2. Transitivity and more is better imply indifference curves do not cross.
3. Preference for variety implies indifference curves are bowed in.