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    Econ102 Task 2

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    SOLANA ARCHER
    The document describes a situation where Elizabeth Santos is presented with two baskets: Basket A containing sausages and other goods, and Basket B containing the same other goods but replacing the sausages with a book by Proust. Santos says she cannot compare the baskets because sausages and a Proust book are so different. The document asks if Santos is obeying all the axioms of preference theory.

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    Econ102 Task 2

    Uploaded by

    SOLANA ARCHER
    9 views1 page
    The document describes a situation where Elizabeth Santos is presented with two baskets: Basket A containing sausages and other goods, and Basket B containing the same other goods but replacing the sausages with a book by Proust. Santos says she cannot compare the baskets because sausages and a Proust book are so different. The document asks if Santos is obeying all the axioms of preference theory.

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    Econ102 task 2

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    The document describes a situation where Elizabeth Santos is presented with two baskets: Basket A containing sausages and other goods, and Basket B containing the same other goods but replacing the sausages with a book by Proust. Santos says she cannot compare the baskets because sausages and a Proust book are so different. The document asks if Santos is obeying all the axioms of preference theory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    9 views1 page

    Econ102 Task 2

    Uploaded by

    SOLANA ARCHER
    The document describes a situation where Elizabeth Santos is presented with two baskets: Basket A containing sausages and other goods, and Basket B containing the same other goods but replacing the sausages with a book by Proust. Santos says she cannot compare the baskets because sausages and a Proust book are so different. The document asks if Santos is obeying all the axioms of preference theory.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    TASK 2

    MICROECONOMICS

    Situation A
    Elizabeth Santos enjoys, among other things, eating sausages. She also enjoys
    reading Marcel Proust. Smith is confronted with two baskets: Basket A which contains
    several other goods and a package of sausages, and B, which contains identical
    quantities of the other goods as basket A, but instead of the sausages, it contains a
    book by Proust. When asked which basket she prefers, She replies, “ I like them both,
    but sausages and a book by Proust are so different that I simply cannot compare the
    two baskets.” Determine whether Santos is obeying all the axioms of preference theory.

    Interpretation:
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