1. 2. 5. 6. 3. 4. Diagramu singt hree separateg raphst hesed ifferentc onsumptions etsi n frf with the followingp roperties: a. consumptiono f goodx cann everb e consumedin largerq uantitiesth at goody . b. consumptiono f bundles( x,y)m ust alwaysn ot be lesst han somem inimum level( x’,y’)w here X’,y’) 0. c. consumptiono f x is unrestrictedb y consumptiono f y must be equalt o 5 units. Considetrh e gameo f Rock-Paper-Scissobrse*t weent wo playersA, and B. In the game,e achp layerc hoosesa n actionf rom the set { R,P ,S }. Describew ho winsf or anyf easiblep airo f actions.l s the orderingd erivedf rom who winscompletea ndt ransitive?E xplain. SupposeH arryh astheu tilityfunctionu (x,y)= 4x* y. PlotH arry’sin differencceu rvef or u = 20 andu = 30. Calculateth e marginalr ate of substitution.F inda notheru tility functiont hat will work for Harry. Karenc onsumesg ood x and y, and her marginalr ate of substitutionis 3/2, regardlesos f how many unitso f x andy that shec onsumesl.f her incomei s$ 200,P ,=510a, nd Pr=$5w, hat is her budgetl ine? FindK aren’s optimalc onsumptionb undle.N ows upposeth at P,i sj ust P*,n ot SfO. finOK aren’sd emandf or x and plot it. Arthurc onsumetsw o goods,i cedt ea (t) ands ugar( s).A rthurh asv eryd iscriminatintga stesa ndw ill onlye njoy hisb everageif it hast wo teaspoonso f sugarp er glasso f icet ea. GraphA rthur’si ndifferencec urves.C any ou find a functionalf orm to describeA rthur’su tility. lf Arthur has$ 4 to spend,s ugarc osts$ O.OSp er teaspoon,a nd icedt ea costs$ 0.15p er glassw, hat is hiso ptimal basket? Sayt hat Galec onsumestw o typeso f goods,g rapefruitsa nd avocados.L etg rapefruitb e on the y-axisa nd avocadoo n the x-axis.O n an indifferencec urvet hrougha ny point where sheh asm ore grapefruitt han avocadost,h e slopei s -2. On the sameg raph,t he slopeo f the indifferencec urvea t pointsw here sheh asf ewer grapef rui t thanavocadosis-LD/2r.a wanindi f ferencecurySeu. pposethatGalehasincomeofSl00andthat t h e…