Alex has a lexicographic preference for two goods. Consider a bundle, A = (3, 5). 1....

Alex has a lexicographic preference for two goods. Consider a bundle, A = (3, 5).
1. Illustrate the better set for the bundle A on the graph.
2. Is the better set you found in part (A) convex? Explain.

Expert Solution

Alex has a lexicographic preference for two goods. Consider a bundle, A = (3, 5).
1. Illustrate the better set for the bundle A on the graph.
2. Is the better set you found in part (A) convex? Explain.

Suppose there are two bundles A=(x', y') and B(x'', y'')

Consumer will prefer bundle A over B if A bundle is best affordable to him and give higher satisfaction. Digram with explanation given below.

Yes it is covex

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Rahul Sunny answered 6 months ago

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