Let and be two consumption bundles, assumed to be non-negative and perfectly divisible. Further, the assumptions of completeness, transitivity, reflexivity, non-satiation, continuity, and strict convexity are satisfied. Then, which of the following statements is NOT CORRECT?
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Let x and y be two consumption bundles, assumed to be non-negative and perfectly divisible. Further, the assumptions of completeness, transitivity, reflexivity, non-satiation, continuity, and strict convexity are satisfied. Then, which of the following statements is NOT CORRECT? (A) Either x ≿ y, or y ≿ x, or both (B) y ≻ x if y contains more of at least one good and no less of any other (C) x is not indifferent to itself (D) For x (or y), its better set is strictly convex
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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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