MICROECONOMICS

umtion 2 [2|] marks]. Billy enjoys traveling. His preferences for bundles of airplane tickets {T} and hotel days {H} are as follows: A = [TmHj t B = [T3,H3} if 'TAX HA ETB XHB Answer all the following questions justifying each of your answers carefully. You MUST justify your answer to get credit. Answers without justification [even if they are correct] will he gimn zero marks. A. Is Billy's preference relation complete? [3 marks}. B. Is Billy's preference relation transitive? [4 marks]. C. Is Billy's preference relation monotone? [4 marks]. C. Is Billy's preference relation strongly monotone? {Think carefully!) [4 marks}. D. Suppose that Billy's preference relation 3:- can be represented by the utility function 1.1T. H} = T X H. Does the utility function efT1H} 2 12E represem the same preference relation? [5 marks]