Unformatted text preview: ous preferences, it is equivalent to the convexity of the preference relation. Problem 5. ( Moderate ) Formulate and prove a proposition of the following type: If the preferences ± are quasi linear in all commodities, continuous, and strongly monotonic, then there is a utility function of the form ( . . . add a condition here . . . ) that represents it. Problem 6. ( Difﬁcult ) Show that for any consumer’s preference relation ± satisfying continuity, monotonicity and quasi-linearity with respect to commodity 1 and for every vector x , there is a number v ( x ) so that x ∼ ( v ( x ) , 0, . . . , 0 ) ....
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- Fall '10
- Utility, Monotonicity, preference relation