A consumer has preferences over bundles of two goods with indifference curves defined by x2 = for k > 0. (a) Find a utility function representing these preferences assuming that the consumer's pref- erences are monotone. (b) Give an example of a utility function representing non-monotone preferences with the same indifference curves. (c) Show that indifference curves of the form x2 = x + k for k = R cannot arise from monotone preferences.
A consumer has preferences over bundles of two goods with indifference curves defined by x2 = for k > 0. (a) Find a utility function representing these preferences assuming that the consumer's pref- erences are monotone. (b) Give an example of a utility function representing non-monotone preferences with the same indifference curves. (c) Show that indifference curves of the form x2 = x + k for k = R cannot arise from monotone preferences.
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.4P
Related questions
Question
![A consumer has preferences over bundles of two goods with indifference curves defined by
X2 =
for k>0.
(a) Find a utility function representing these preferences assuming that the consumer's pref-
erences are monotone.
(b) Give an example of a utility function representing non-monotone preferences with the
same indifference curves.
(c) Show that indifference curves of the form x2 = x + k for k € R cannot arise from
monotone preferences.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc93dd3a-e660-4464-bc8c-e382a2c34aae%2Fb1e022e3-d527-4ce6-b588-193692647a83%2Fywa0bbh_processed.png&w=3840&q=75)
Transcribed Image Text:A consumer has preferences over bundles of two goods with indifference curves defined by
X2 =
for k>0.
(a) Find a utility function representing these preferences assuming that the consumer's pref-
erences are monotone.
(b) Give an example of a utility function representing non-monotone preferences with the
same indifference curves.
(c) Show that indifference curves of the form x2 = x + k for k € R cannot arise from
monotone preferences.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you