Absolute value-current consumption bundle is strictly

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The absolute value of Mars' MRS at his current consumption bundle is strictly greater than 2. Mars has convex preferences. Which of the following statements is (are) true? Justify your answer graphically.

1. Taking away some of good 1 and giving Mars 2 units of good 2 for each unit of good 1

taken away will necessarily make him worse o .

2. Taking away some of good 1 and giving Mars 2 units of good 2 for each unit of good 1

taken away will necessarily make him better o .

3. Giving Mars some of good 1 and taking away 2 units of good 2 for each unit of good 1

he is given will necessarily make him worse o .

4. Giving Mars some of good 1 and taking away 2 units of good 2 for each unit of good 1

he is given will necessarily make him better o .

Reference no: EM13854532

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