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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:
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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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- Spring '08
- staff
- Economics, Utility, Neoclassical economics
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