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Econ 100A Summary

Econ 100A Summary - them • Transitivity if consumer...

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Econ 100A Chapter 3: Consumers constrained choice Axioms of rational choice: in order for consumer preference to be rational they must have: Completeness: holds that when faced with a choice between 2 bundles of goods, a consumer can rank so that only one of the following relationships is true, he prefers bundle 1 to bundle to 2, or 2 to 1, or he is indifferent b/w
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Unformatted text preview: them. • Transitivity: if consumer weakly prefers bundle 1 to 2, and bundle 2 to 3, then he also prefers bundle 1 over bundle 2. • Convexity: individual • More is better • Continuity: no jumps Marginal Utility:...
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