b.dinner for the first time at a restaurant with a special cuisine This example is parallel to examples of adventure seeking.For some,a new dining experience creates enthusiasm to seek out more exciting and different cuisines and dishes For others they develop a fondness for regularity and consistency or fear of the new and unknown. In either of these cases,choices change as consumption occurs. 2.Draw indifference curves that represent the following individuals preferences for hamburgers and soft drinks.Indicate the direction in which the individuals'satisfaction (or utility)is increasing. a. Joe has convex preferences and dislikes both hamburgers and soft drinks Since Joe dislikes both goods,his set of indifference curves will be bowed inwards towards the origin insteado outwards,as in the normal cas where more is preferred to less.Given he dislikes both goods,hi satisfaction is increasing in the direction of the origin.Convexity of preferences implies his indifference curves will have the normal shape in that they are bowed towards the direction of increasing satisfaction. Convexityals implies tha t given any two bundles between which the consumer is indifferent,the "average"of the two bundles will be in the preferred set,or will leave him at least as well off. hamburger soft drink Jane loves hamburgers and dislikes soft drinks.If she is served a soft drink,she will pour it down the drain rather than drink it. Since Jane of the soft drink if it is given to her,she considersit to bea neutral good This means she does not care about sof drinks one way or the other.With hamburgers on the vertical axis,her indifference curves are horizontal lines.Her satisfaction increases in the upward direction.b. dinner for the first time at a restaurant with a special cuisine This example is parallel to examples of adventure seeking. For some, a new dining experience creates enthusiasm to seek out more exciting and different cuisines and dishes. For others, they develop a fondness for regularity and consistency or fear of the new and unknown. In either of these cases, choices change as consumption occurs. 2. Draw indifference curves that represent the following individuals’ preferences for hamburgers and soft drinks. Indicate the direction in which the individuals’ satisfaction (or utility) is increasing. a. Joe has convex preferences and dislikes both hamburgers and soft drinks. Since Joe dislikes both goods, his set of indifference curves will be bowed inwards towards the origin instead of outwards, as in the normal case where more is preferred to less. Given he dislikes both goods, his satisfaction is increasing in the direction of the origin. Convexity of preferences implies his indifference curves will have the normal shape in that they are bowed towards the direction of increasing satisfaction. Convexity also implies that given any two bundles between which the consumer is indifferent, the “average” of the two bundles will be in the preferred set, or will leave him at least as well off. hamburger soft drink b. Jane loves hamburgers and dislikes soft drinks. If she is served a soft drink, she will pour it down the drain rather than drink it. Since Jane can freely dispose of the soft drink if it is given to her, she considers it to be a neutral good. This means she does not care about soft drinks one way or the other. With hamburgers on the vertical axis, her indifference curves are horizontal lines. Her satisfaction increases in the upward direction