Economics 211 Chapter 2 question

1. Let the choice set X be n + . Following are the denitions of what it means to say that one vector in X is bigger than another vector in X , together with denitions of the terms strong monotonicity, monotonicity, and local nonsatiation. And, for a X and b X , dene a b to mean the consumer strictly prefers bundle a to bundle b. Prove strong monotonicity implies monotonicity, and monotonicity implies local nonsatiation. Denitions Let y (y1 , y2 , ..., yn ) X and z (z1 , z2 , ..., zn ) X . Then y z means yj zj , j = 1, ..., n and y >> z means yj > zj , j = 1, ..., n. Let a X, b X : d (a, b)
j =n j =1

(aj bj )2

1/2

, where we use the positive root.

Let a X : N (a) {x X : d (a, x) < , > 0} Strong monotonicity: suppose a X and b X and b a and b = a; then b a. Monotonicity: suppose a X and b X and b >> a; then b a. Local non-satiation: suppose a X : then every -neighbourhood of a, N (a), contains at least one point b such that b a. Proof that strong monotonicity implies monotonicity: Suppose a X and b X and b >> a, then a X and b X and b a and b = a, that is, the assumptions of strong monotonicity are met. Since we are assuming strong monotonicity is true we know its conclusion holds, that is, b a, which is what needed to prove. Proof that monotonicity implies local non-satiation: Every -neighbourhood of a contains some b such that b >> a. Since we are assuming monotonicity is true, we know its conclusion holds if its assumptions are met, and they are met here. Thus b a which is what we needed to prove.