Question One O Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by: (x, x2) > (21, 2) e min (x1, x2) 2 min (z), z2) 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 O Zabron has preferences > for Champagne (good 1) and Wine (good 2) defined by: (x, x2) > (21, 2) e min (x1, x2) 2 min (z), z2) 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).

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 11PA

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