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I need help with all the parts. TIA 1. Alice's preferences over beer (a, ) and pretzels (@2) is represented by u ($1; $2) =
I need help with all the parts. TIA
1. Alice's preferences over beer (a, ) and pretzels (@2) is represented by u ($1; $2) = - (21 - 2)2 - (12 -1) (a) Are her preferences monotone? Are they strictly monotone? Explain in no more than two brief sentences. (b) Are her preferences convex? Are they strictly convex? Explain in no more than two brief sentences. (hint: it may be helpful to draw some indifference curves to answer these questions, but this is not required for a mark)Step by Step Solution
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