Napoleon has preferences on bundles of two goods (x,y). Napoleon finds (x,y) is

Question

Napoleon has preferences on bundles of two goods (x,y). Napoleon finds (x,y) is at least as good as (x’,y’) whenever the following is true: either x>x’, or x=x’ and yy’. What is the shape of an indifference set of Napoleon’s preferences? A U shaped curve. An L shaped curve. A curved line that satisfies more is better. A straight line. A single point.

Napoleon has preferences on bundles of two goods (x.y). Napoleon finds (x.y) is at least as good as (x',y') whenever the following is true: either x>x, or x=x, and yy. What is the shape of an indifference set of Napoleon's preferences? OA u shaped curve. An L shaped curve. A curved line that satisfies more is better A straight line. O A single point. QUESTION 38 Napoleon has preferences on bundles of two goods (x,y). Napoleon finds (x,y) is at least as good as (x',y') whenever the following is true: either x>x', or x-x' and yey'. Do Napoleon's preferences violate completeness? O No. O Yes.

Explanation / Answer

1.

Napolean has preferences as given based on that the indifference curve would be a curve that satisfies more is better as if (x,y) bundle is at least as good as (x',y') means either the former bundle is strictly preferred to latter or is indifferent to it.

As one moves from x to consuming more y then y is at least as good as y hence more is preferred to less.

the correct option is c

2.

Completeness implies that any two bundles can be compared where x is either strictly preferred to x' but in case they are equal then y is at least as good as y'. This implies that (x',y') is not at least as good as (x,y)

False

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