Utility functions U(x1,x2)=x2(2,3)x(4,1)~(2,2) Define w=20 10
Utility Functions U(x1 ,x2 ) = x1x2 (2,3) (4,1) ~ (2,2). Define W = 2U + 10. p
Utility Functions U(x1,x2)=x2(2,3)x(4,1)~(2,2) Define w=20 10 Then WX, x2=2X,X2 +10 So W(23)=22>W4,1)=W(2,2)=18. Again, (23)(4,1)~(22 W preserves the same order as U and v and so represents the same preferences
Utility Functions U(x1 ,x2 ) = x1x2 (2,3) (4,1) ~ (2,2). Define W = 2U + 10. Then W(x1 ,x2 ) = 2x1x2+10 so W(2,3) = 22 > W(4,1) = W(2,2) = 18. Again, (2,3) (4,1) ~ (2,2). W preserves the same order as U and V and so represents the same preferences. p p