Question 1: Explain why the following statements are true/false. Justify your answer with logic and proper explanation, using appropriate model (diagram/graph/equation) if required. No mark will be given for an answer without an explanation.

a) The assumptions of decisiveness/completeness and consistency/transitivity are not necessarily required for a theory of rational consumer's choice.

b) A well-defined utility function can be constructed without assuming, 'never get enough'.

c) The axioms of non-satiation and convexity imply that more is always better than less and a consumer always places positive value on more consumption.

d) If MUA/PA > MUB/PB, the rational consumer will decrease the consumption of A relative to B.

e) When marginal utility is maximum, the total utility will be zero.

Question 1: Explain why the following statements are truer't'alse. Justify your answer with logic and proper explanation= using appropriate model {diagramt'graphfequation} if required. No mark will be given for an answer without an explanation. 3} b} C} d} E} The assumptions of decisivenessu'completeness and consist encyftransitivity are not necessarily required for atheory of rational consumer's choice. A welldefined utility function can be constructed without assuming= :never get enough\". The axioms of non-satiation and convexity imply that more is always better than less andaconsumer always places positive value on more consumption. If hI'IUAa'PA 3* l'\\.*.'[Ul3a"P'l3= the rational consumer will decrease the consumption of A relative to B. 1'When marginal utility is maximum: the total utility will be zero