Question: 3. (5 points) Consider the utility function u(x, y) = 10 for all bundles (x, y) (a) What are strict preferences? What are the indifferences?

3. (5 points) Consider the utility function u(x, y) = 10

3. (5 points) Consider the utility function u(x, y) = 10 for all bundles (x, y) (a) What are strict preferences? What are the indifferences? (b) Argue that the preferences represented by this utility function are strictly convex or that they are not. (c) Argue that the preferences represented by this utility function are complete or that they are not. (d) Argue that the preferences represented by this utility function are strongly monotonic or they are not

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

5 points) Consider the utility function u(x, y) = 10 for all bundles (x, y) a) What are strict preferences? What are the indifferences? (b) Argue that the preferences represented by this utility...

Question 1 0 out of 2.5 points Assume that the price of commodityA is $20, the price of commodity B is $10, and that the consumer is currently spending all available income. At the consumer's current...

ONLY answer no explanation Why are typical indifference curves negatively sloped when a consumer likes both goods? 0 Because utility increases as you trade consumption between goods 0 Because utility...

exercise 2 Exercise 1. (12 points) As we mentioned in class, a utility function U :X C 1R" > R represents the preference relation 2 when it agrees with the relation in the sense that: a > b (Eb u(a)...

Hi tutor. Kindly help me solve these I1 Exercise 2. Let f: R" + R be a real-valued function on R", and Xo = E R a In point. (a) If f is differentiable at Xo, explain what it means to say that the...

i) The preferences are nondecreasing but not locally nonsatiated. (5 marks) (ii) The preferences are convex but not strictly. Question 2 (30 marks). (1) Consider a consumer with consumption space X 2...

(1) Consider a consumer with consumption space X : R1 with ratid nal weak preferences i: represented by a utility function u : X > R. For each of the following cases give an example either by drawing...

Consider; Community groups in Autarka have expressed concern that a voucher scheme is unnecessarily paternalistic; depriving low income households of the choice of how to spend their income. These...

One. Your friend's birthday is tomorrow. She does not own a watch, yet you know that she would enjoy having one. (a) Draw a budget constraint / indifference curve graph for your friend, with Quantity...

n December 31, 2018, ABC Partnership's Statement of Financial Positions shows that A, B and C have capital balances of P500,000, P300,000 and P200,000 with profit or loss ratio of 1:3:6. On January...

The financial manager of Orbit Limited provided the following forecasts for 2023: Sales are estimated at 8 000 units with a selling price of R1 800 each. The manufacturing costs include direct...

Step Rite Company manufactures and sells shoes. Step Rite uses activity-based costing to determine the cost of the sales order processing and the shipping activity. The sales order processing...

If a 2 D array has 4 rows and 5 columns, which of the following represents the total number of elements in matrix? q , Cannot be determined 4 0 9 2 0

Match the term on the left to the defintions on the right A method of tracking health quality, responsiveness, and social and financial risk or an organization. Moral hazard The achievement of the...

The work role: This consists of service to others at your workplace.

The role of society: This consists of service to the local community, society and nature.

13. Think about a relationship conflict you have had in your workplace or home situation. Try to interpret the conflict from the following logical levels: a. Purpose b. Role c. Values d. Competence...