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Use these combinations for parts a and …

Use these combinations for parts a and b: Combination Clothes Food A 1 basket 1 pound B 1 basket 2 pounds C 1 basket 3 pounds D 2 baskets 1 pound E 2 baskets 2 pounds F 2 baskets 3 pounds G 3 baskets 1 pound H 3 baskets 2 pounds I 3 baskets 3 pounds a. If more is preferred to less, which combinations are clearly preferred to other combinations? Rank the combinations in the order of preference. b. Some clothes–food combinations cannot be clearly ranked. Why not? 2. Explain why two indifference curves cannot cross. 3. Using the data that follow, plot two demand curves for cake. Then explain what could have led to the shift of the demand curve. I. Price of Cake/ II. Price of Cake Quantity of Cake Demanded /Quantity of Cake Demanded $1 10 $1 14 $2 8 $2 10 $3 4 $3 8 $4 3 $4 6 $5 1 $5 5

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