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Question 3 Suppose there are only two goods: Beer and Milk. Jess' preference over bundles of beer and milk is as follows: for any two
Question 3 Suppose there are only two goods: Beer and Milk. Jess' preference over bundles of beer and milk is as follows: for any two bundles A = (bA, mA) and B = (bB, mB) (where b and m denotes the amount of beer and milk, respectively), A _ B if and only if: Either: bA > bBi Or: bA = bB and mA > mB. Please be reminded that Jess' preference is not identical to Jose's. (a) (5 marks ) Is Jess' 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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