can you please show the complete steps?
Answer
My preference is rational i.e. my decision over choice is rational
Stictly monotonic means if (x1,x2) is my preffered bundle over some another bundle (y1,y2) , and both bundles are not equal and 1st bundle has at least one good more than second bundle and all other goods are equal then preference is strictly monotonic
Strictly convex means if three bundles A ,B and C , A>B and C> B then, convex combination of A and C are > B
can you please show the complete steps? Consider my preference over bundles (x1,x2), where x〉 0...
Please give detailed steps. Thank you. 2.1 Representing a preference Consider my preference over bundles (x1,x2), where x0 andx20. You do not know all of nt pairwise comparisons in my preference, but you do know the following: Suppose you also know that my preference is rational, strictly monotonic, and strictly convex Can you infer how my preference compares the following pairs? Explain each one briefly. a) (3,7) versus (1,7), b) (3,7) versus (7,5), c) (1,7) versus (4,6), d) (7,5) versus...
Consider a preference over bundles (x1,x2), where x1 ≥ 0 and x2 ≥ 0. Suppose the rational agent with this preference is indifferent among the following three bundles: (x1,x2), (x1 + 1, x2 - b), (x1 + 2, x2 - c) where 0 < b < c < x2. Note that these three bundles must lie on the same indifference curve. Suppose also that the agent’s preference is strictly monotone and strictly convex. What does this imply about the relationship...
please show clear steps Suppose there are two goods, food and clothing. My preference has the following properties: 1. I am rational. 2. I need at least one unit of food and one unit of clothing in order to survive. 3. I strictly prefer surviving over not surviving. 4. I am indifferent over all situations in which I do not survive 5. When I have strictly more than one unit of each good, I satisfy strict monotonicity and strict convexity....
please show clear steps. Thanks! Suppose there are two goods, food and clothing. My preference has the following properties: 1. I am rational. 2. I need at least one unit of food and one unit of clothing in order to survive. 3. I strictly prefer surviving over not surviving. 4. I am indifferent over all situations in which I do not survive 5. When I have strictly more than one unit of each good, I satisfy strict monotonicity and strict...
Suppose there are two goods, food and clothing. My preference has the following properties: 1. I am rational. 2. I need at least one unit of food and one unit of clothing in order to survive 3. I strictly prefer surviving over not surviving. 4. I am indifferent over all situations in which I do not survive. 5. When I have strictly more than one unit of each good, I satisfy strict monotonicity and strict convexity. 2 6. When I...
Question 2. Consider the following 8 bundles of goods x and y: A = (8,4) B = (5,6) C = (5,9) D = (10,3) E =(1,4) F =(6,5) G=(2,8) H =(7,8) (a) Come up with an example of a utility function that will produce the following order of preference for the bundles, where H is most preferred, A and G are equally preferred, and E is least preferred. H , C , B , F , A = G ,...