Question

True or False. Explain

(a) Tom's world also consists of Lasagna (l) and Chocolates (C). Tom however, has the following preference over bundles of l and C: Tom strictly prefers the bundle (1, 1) = (5, 5) to any other bundle. Based on this we can conclude that Tom's preference is strictly monotonic.

(b) A consumer consumes apple pie and ice cream. She considers them perfect complements to each other. Then, she must become strictly worse off when the price of ice cream increases.