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Suppose there are two types of shirts available to Carl: red shirts and black shirts Carl is always willing to exchange three black shirts for one red shirt.
a. Draw several indifference curves to illustrate Carl's preferences.
b. What is Carl's MRS?
c. Are Carl's preferences monotonic? How do you know?
d. Are Carl's preferences convex, strictly convex, or not convex? Explain /show how you know
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