Suppose at a bundle c d in the interior of the choice set


Suppose at a bundle (c, d) in the interior of the choice set, your MU for each good is zero. you are rational.

A) You will consume some bundle on the budget line. true or false.

B) Tim Finnegan decided to drink whiskey for the first time in his life, while sitting on top of a ladder. but after drinking 5 glasses ( non of which make him sad ), the moment he drinks the 6th glass, he is drunk falls down and hurts his head (which make him sad). A glass of whiskey cost 1 tim has 100 in his pocket. the first dat tim tried this he is hurt. time is rationale of the second day will he drink the 6th glass or not ? Assume prefernces do not change over time.

C) Can you compare (a) with tim's situation ? explain how ?

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Business Economics: Suppose at a bundle c d in the interior of the choice set
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