Assume that a consumer with lexicographic preferences over two commodities requires a positive amount of both commodities

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Assume that a consumer with lexicographic preferences over two commodities requires a positive amount of both commodities so that consumption set X = ℜ2++. Show that no optimal choice exists.

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Foundations of Mathematical Economics

ISBN: 978-0262531924

1st edition

Authors: Michael Carter

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Question Posted: May 02, 2016 11:31 AM

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Assume that a consumer with lexicographic preferences over two commodities requires a positive amount of both commodities

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Assume for simplicity that 1 2 1 and that 1T...View the full answer

Foundations of Mathematical Economics

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