ECON 4001.01 Lecture 3: 3. Preferences
17 Sep 2020
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Xc xz s ly i r yr indifferent. 1 completenest we assume that any bundles can be compared. X xz z cya y2 or c x i xz e y l ys any bundle is at least as good as itself. If lx x r z y yu then x xa l z zz cy ys 2 cz z s. Indifferencecuney cannot cross meantimekinenerwhthymbfoud in be onthe same curve y n z x z therefore x n y theyshouldbeonthed are curve. Z perfectstitutes two goods1 bundles are perfectsubstitutes whenthe consumeriswillingto substitute one to another at a constant rate perfectcomplements eg right leftshoe plot identifyeach value toconstruct the curve. Ten theconsumersalways want thegoodsin fixedproportions to eachother a commodity that the consumer doesn"t like neutrals doesn"t care one way or another. Mr thecloserheis tothat bundle thebetteroffheis toomuch of something could be bad sapnognfibpio. hr chocolate discreetgoods. 1 preferencesare monotonicallyincreasingcmonotonicity no barely no blisspoint moresigbetter creally i.
