local nonsatiation

[Var1995]

someone pls help with this ques.

LNS doesn't hold and (0,0) is the equilibrium point. this is the answer. as the consumer is preferring less to more, so we r assuming that both the goods are bad and for bads 0 consumption is a bliss point. is the explanation right? someone pls check.

bliss point can lie outside our budget right? and strictly monotonic preferences and weakly monotonic preferences mean the same thing?

[knowpraveen]

Here, it's clear that (0,0) is preferred to any bundle with a positive amount of both goods or a positive amount of at least one. So, the bliss point is (0,0). Local Non-satiation by it's definition means that for any bundle (x,y) there is a bundle which is very close by and provides greater utility than the bundle (x,y).

The bliss point doesn't stay true to the definition of local non-satiation in the strict sense. Hence, LNS doesn't hold.

For any price allocations the equilibrium bundle demanded would be (0,0).

Strongly monotonic preferences are those in which a bundle x is preferred to a bundle y is at least one of the goods of x has more units than that of y. weakly monotonic has this true for both goods.

Hope this explains. Thanks. =)