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3 votes

How are these examples irrational?

Pallak Goyal gave what I think can reasonably be assumed to be the answers the author was looking for. This answer is a comment that would not fit under the actual comments. The idea behind (a) and (c)...
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4 votes
Accepted

How are these examples irrational?

a) If Sophie is not indifferent between all options, then completeness requires that she have some ranking between atleast 2 of them. In this case, she must weakly prefer one option to the others.So ...
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2 votes

Demand correspondence is both upper and lower hemi-continuous; is the preference continuous?

If the commodity space is $\mathbb{R}^2_+$ and the preference is Lexicographic, then with the standard budget sets $B=B(p_X, p_Y, M) = \{(x, y) \in \mathbb{R}^2 | p_Xx + p_Yy \leq M\}$ where $(p_X, ...
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