If Melody has more classical records than rock and roll records, she is willing to exchange exactly 1 classical record for 2 rock and roll records, but if she has more rock and roll records than classical records, then she is willing to exchange exactly 1 rock and roll record for 2 classical records.Melody has convex preferences.

Question

Quizplus · Accepted Answer

Convex preferences imply that Melody would prefer a mix of both types of records rather than extremes. However, her willingness to exchange records at different rates depending on her current holdings suggests non-convex preferences, as she values the records differently based on her current collection.

If Melody Has More Classical Records Than Rock and Roll