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Question 3 Suppose there are onlj,r two goods: Beer and Milk. Jessi preference over bundles of beer and milk is as follows: for any},r two
Question 3 Suppose there are onlj,r two goods: Beer and Milk. Jessi preference over bundles of beer and milk is as follows: for any},r two bundles A = {b,mA) and B = {33,111 B) [where b and m denotes the amount of beer and milk, respectively), A i: B if and onlyr if: Either: EA 2:- b3; 01": g = b3 and MA :3 m3. Please be reminded that Jess' preference is not identical to Jos's. (a) (5 marks) Is Jess1 preference complete? Explain. (b) (5 marks) Is Jess' preference transitive? If yes, show why; if no, give an example of three bundles among which the comparisons become cyclical. (c) (5 marks) Is Jess' preference continuous? If yes, show why; if no, give an example of three bundles that do not satisfy the preference continuity. Illustrate
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