3) Suppose that Daphne has preferences over two commodities (x1 and x2), but that to Daphne x1 is a bad, i.e., consuming more units of x1 actually lowers utility. a) Does

the monotonicity assumption we stated in class make sense for Daphne? If not, can you modify the statement of this assumption so that it would be sensible in this context? b) Suppose that you're choosing a place to live in Los Angeles. The goods are x1 monthly rent and x2 = air quality. Suppose you're an asthmatic - while you may be willing to accept slightly higher lower air quality to save on rent, if air quality falls below a certain level it's life- threatening (and hence there's no amount of rent reduction you'd accept to go below this). Sketch your indifference curves in good space. Intuitively, do they satisfy a version of "convexity"?