Skip to content
We use only essential cookies to keep you signed in and remember your preferences. See our Cookie Policy.
TestStop
MocksPracticeResourcesIndiaBlogPricing
Sign in
Questions › DSE › DSE 2017 › Q2
2 marks, −0.666666666666667Microeconomics › Consumer preferences and utility › Preference axioms and rationalityHardabout 4 min

DSE 2017 Question 2: Consumer preferences and utility

Person AAA has lexicographic preferences (strictly prefers more xxx; ties in xxx broken in favour of more yyy). Consider the bundle (2,1)(2,1)(2,1) and a sequence of bundles (sn)(s^n)(sn) such that each sns^nsn is strictly preferred to (2,1)(2,1)(2,1). If this sequence converges to a bundle sss, then

Tap an option to check your answer.

Answer and worked solution

Checking your account…

Plain-text version

Person A has lexicographic preferences (strictly prefers more x; ties in x broken in favour of more y). Consider the bundle (2,1) and a sequence of bundles (sⁿ) such that each sⁿ is strictly preferred to (2,1). If this sequence converges to a bundle s, then (A) s is strictly preferred to (2,1) (B) s is indifferent to (2,1) (C) (2,1) is strictly preferred to s (D) any of the above

Also written as: Person A has lexicographic preferences (strictly prefers more x; ties in x broken in favour of more y). Consider the bundle (2,1) and a sequence of bundles (s^n) such that each s^n is strictly preferred to (2,1). If this sequence converges to a bundle s, then

Consumer preferences and utility has come up 93 times in 7 exams since 2007.

What this question tests

This question is on Preference axioms and rationality, part of Consumer preferences and utility in Microeconomics.

The assumptions that make preferences well behaved: completeness, transitivity, monotonicity, continuity and convexity.

TestStop has 13 past-paper questions on this subtopic.

Practise Consumer preferences and utilityMore on Preference axioms and rationality

Similar questions from other papers

  • CUET-PG 2026 · Q1Which among the following is not an assumption of Indifference Curve?
  • GATE 2026 · Q28Madhu's utility function is given by U=max (2C,3F), where C represents the amount of cloth and F represents the amount of food. Her preferences DO NOT satisfy which one…
  • UGC-NET 2026 · Q55Which of the following is NOT the assumption of the Revealed Preference Hypothesis?
  • CUET-PG 2025 · Q1If the demand function is given as P = 110 - Q² and market equilibrium is attained at P₀ = 29 and Q₀ = 9, calculate the consumer surplus.
  • GATE 2025 · Q38A Constant Elasticity of Substitution (CES) utility function is given as: U_(CES)(z₁,z₂) = 1/δ(z₁^δ + z₂^δ) where z₁ and z₂ are two goods, and δ ≤ 1, δ ≠ 0. A…

Question from the DSE 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.