Question One @ Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by: (*, x2) > (2, 2) min (x, x2) 2 min (z), z;) and max (x, x2) 2 max (z,, z2) Are Zabron's preferences complete? Transitive? Locally Non - satiable? Convex? Justify your answers and draw the No-worse-Than, No-Better-Than and the Indifference set of a representative bundle. (m Suppose that Zabron's preferences > can be represented by a continuous utility function. Show that > satisfies Axioms 1 (Completeness). 2 (Transitivity) and 3 (Continuity).

Question One @ Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by: (*, x2) > (2, 2) min (x, x2) 2 min (z), z;) and max (x, x2) 2 max (z,, z2) Are Zabron's preferences complete? Transitive? Locally Non - satiable? Convex? Justify your answers and draw the No-worse-Than, No-Better-Than and the Indifference set of a representative bundle. (m Suppose that Zabron's preferences > can be represented by a continuous utility function. Show that > satisfies Axioms 1 (Completeness). 2 (Transitivity) and 3 (Continuity).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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