"Regular-looking" indifference curves - ones you may be familiar with from previous econ courses - typically slope downward (weakly, i.e. they may have horizontal or vertical segments) and are bent toward the origin. There are typically an infinite number of them covering the entire space, and they never cross. Consider the following strange indifference curves defining preferences over the consumption set X = R?. For each one, explain which of the axiom(s) (A1, A2, A3, A4', A4, A5', A5) are violated.

"Regular-looking" indifference curves - ones you may be familiar with from previous econ courses - typically slope downward (weakly, i.e. they may have horizontal or vertical segments) and are bent toward the origin. There are typically an infinite number of them covering the entire space, and they never cross. Consider the following strange indifference curves defining preferences over the consumption set X = R?. For each one, explain which of the axiom(s) (A1, A2, A3, A4', A4, A5', A5) are violated.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter3: Preferences And Utility

Section: Chapter Questions

Problem 3.9P

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