Re: DSE 2009

Posted by anon_econ on Feb 25, 2012; 5:06am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2009-tp7296495p7316803.html

hey i just realized i had made a mistake in that micro question. even in the case of strictly convex preferences he may not be better off. u can see it graphically as well as intuitively. if he is given a very small quantity of y, he might not be better off even tho now he can get M/px of x. so the final answer is that only in the case of perfect substitutes would he NECESSARILY be better off.
in that maths question u can plot such a function n c what f(y) would be for each y..for eg if u hv f(x)=x then g(1/2) would be the min value from among all those x's for which f(x)>=1/2. this would give u g(1/2)=1/2. g has to be non decreasing (just think of what a decreasing g would mean). and according to me if f is not STRICTLY increasing then g is not continuous..i dunno what my mistake is.. :/