Question

State two axioms of preferences

Answer 1

[AI-generated answer — Bot GPT 3.5]

1. Completeness: This axiom states that for any two baskets of goods A and B, an individual can always compare them and either prefer A to B, prefer B to A, or be indifferent between them.

2. Transitivity: This axiom states that if an individual prefers basket A to basket B, and also prefers basket B to basket C, then the individual must also prefer basket A to basket C. This ensures that preferences are logically consistent and do not contain any cycles.