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
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Chapter1: Making Economics Decisions
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Question One
@ Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by.
(x, *2) > (ž, 23) e min (xj. x2) 2 min (z, 2,) and max (*, x) 2 max (2), 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 >
safisfies Axioms 1 (Completeness), 2 (Transitivity) and 3 (Continuity).
Transcribed Image Text:Question One @ Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by. (x, *2) > (ž, 23) e min (xj. x2) 2 min (z, 2,) and max (*, x) 2 max (2), 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 > safisfies Axioms 1 (Completeness), 2 (Transitivity) and 3 (Continuity).
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