Problem 1. The preference relation is defined as follows: (x1, x2) E (y1, Y2) if 1...
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Problem 1. The preference relation is defined as follows: (x1, x2) E (y1, Y2) if ¤1 +2x2 > Y1 + 2 y2. • Draw indifference curves for bundles (2, 2), (3, 3), (4, 4). • Show that E is strictly monotonic. • Show that is convex. Problem 1. The preference relation is defined as follows: (x1, x2) E (y1, Y2) if ¤1 +2x2 > Y1 + 2 y2. • Draw indifference curves for bundles (2, 2), (3, 3), (4, 4). • Show that E is strictly monotonic. • Show that is convex.
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a x1x2 will be indifferent to y1y2 if and only if x12x2y12y2 This is because if x12x2y12y2 then xy a... View the full answer
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