(b) Examine the validity of the following statements, giving reasons: (i) If a person consumes two commodities both of which are undesirable, the indifference map will look exactly the same as when...

Extracted text: (b) Examine the validity of the following statements, giving reasons: (i) If a person consumes two commodities both of which are undesirable, the indifference map will look exactly the same as when both the commodities are desirable. (ii) If the utility function for two commodities is of a Cobb-Douglas form, then the Engel curve is a straight line passing through the origin. (iii) The production function, y = x,75 + x24/7 , exhibits decreasing returns to scale. 2/5