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Exercise 2. (6 points) Consider a consumer with monotonic preferences over the feasible set X = RN, that are represented with the utility function U(x).

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Exercise 2. (6 points) Consider a consumer with monotonic preferences over the feasible set X = RN, that are represented with the utility function U(x). Assume also that the utility levels are positive for all bundles in R N+ a) Show that the transformation f(U(x)) = aU(x) + b(U(x))? where a, b >0 also represents the same preferences. b) Show that the transformation g(U(x)) = U(x) + >_, x, does not represent the same preferences

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