Chapter 2
Consumers and Their
Preferences
Figure 2.1 The Consumption Possibility Set
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Figure 2.2
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A Convex Set
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Figure 2.3 The Economically Feasible Consumption
Set: Time Constraints
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Figure 2.4 The Economically Feasibly Consumption
Set: Income Constraints
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Figure 2.5 Lexicographic Preferences
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Figure 2.6 Nonsatiated Preferences
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Figure 2.7 Indifference Curves
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Figure 2.8 Indifference Curves Cannot Slope Upward
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Figure 2.9 Indifference Curves Cannot Cross Each
Other
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Figure 2.10 Indifference Curves Farther from the
Origin Represent Higher Utility Levels
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Figure 2.11(a)
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Figure 2.11(b)
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Figure 2.12 Convex Preferences and the Marginal
Rate of Substitution
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Figure 2.13(a)
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Figure 2.13(b)
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Figure 2.13(c)
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Figure 2.13(d)
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Figure 2.14 Perfect Substitutes
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Figure 2.15 The Optimal Consumption Bundle
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Figure 2.16(a) Optimal Allocations of Time
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Figure 2.16(b) Optimal Allocations of Time
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Figure 2.17 Study for Final Exams
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Figure 2.18 The Determination of the Optimal Tip
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Figure 2.19
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Figure 2.20
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