Madhu's utility function is given by , where represents the amount of cloth and represents the amount of food. Her preferences DO NOT satisfy which one of the following axioms?
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1 mark, −0.333MicroeconomicsConsumer preferences and utilityPreference axioms and rationalityHardabout 3 min
GATE 2026 Question 28: Consumer preferences and utility
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Madhu'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 of the following axioms? (A) Completeness (B) Continuity (C) Convexity (D) Transitivity
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.
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