Question: Consider my preference over bundles (x1,x2), where x〉 0 and x2 〉。. You do not know all of the …

02 May Question: Consider my preference over bundles (x1,x2), where x〉 0 and x2 〉。. You do not know all of the …

Posted at 07:57h in 2Past Paper by Exams

Consider my preference over bundles (x1,x2), where x〉 0 and x2 〉。. You do not know all of the strict/indifferent 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 (5,6), e) (1,7) versus (49,1) Finally, f) Draw indifference curves through all of the bundles listed above, in a way that is consistent with my preference.

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