Question

Preferences

J. There are two goods, I and 12, and the possible combinations (bundles) are X = {(1,1),(1,2), (1,3), (2.1). (2.2), (2,3)}. For the following two preferences fill in the set <= {(1, y) EX XX:13 y}. 1. Lexi's preferences, 3, over these goods can be described by "More of good 2 is always better than any amount of good 1, but given two bundles with the same amount of good 2, more of good 1 is better than less." 2,3) (2.2) (2,1) (1,3) (1.2) (1,1) (1,1) (1,2)|(1,3)(2,1)|(2,2 (2,3) 2. Mini's preferences can be described by the utility function ( 11, 12) = min{2x1,12}. (2,3) (2,2) (2.1) 1.31 (1.2) (1.1) (1.1) (1.2) (1,3) (2.1) (2.2) (2,3)

Answer 1

P D 1 According to quartoni "More of boo goods is always better than any amount of good , but given two bindles w domOmount or 9ODE 2, more good Is butter than les for encomple; with given two bendles (2,3) and 1,1) Lina 3 is greater than 't of good 2 so we choon I (23) y and with bundes 4,3) and (2, 3). Since good 2. 16 same in both bundles so we will see good t and 2 w greater than t so we choole (2,3) on the basis of Notion we will till the table 4:13 12:3)2,3)2,3)(2,3 2,2) 12,3) (2, 2) (2.2.712,270,312,2112,232, 3; 12.1.1.2.190,20,3762,02,2) 12,3) (1,3),,3),3 10,3) (1, 3) 0,3)(2.31 4.291, 2) U270370,2)/2,232,3)|| 0.010,20,3)/221) 2.2.) 2,3) LKD/Q, 2/6,3)/2, 10/2, 22,3) Given uere, u = min £2u, abiter crample we how bindle (2,3) and (41) U (2, 3) = min [2x2,3} = 3. (1.1) som { 2x1,15 = 1 do we we chooke (2,31 since we always home to monimic utilin, the basis of we will till the fallowing table- 11 on

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