Question: Is it true, false, or uncertain that x ( p , w ) x ( p , w )? Why? 1. (25 points) Alice's preferences

Is it true, false, or uncertain that x(p, w) x(p, w)? Why?

1. (25 points) Alice's preferences are rational, convex, continuous, and locally non- satiated. Suppose that she is indifferent between the consumption bundles she chooses at (p,w) and (p',w'); that is, x(p,w) ~ x(p',w'). Let p\" = %(p + p') and w\" = %(w + w'), and suppose that p 75 p' and w 7 w'. (a) (10 points) Is it true, false, or uncertain that x(p\

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