Consumer behaviour...........?

Question

if the consumer's preferences are represented by u(x,y),can we analyse the social preference by analysing the preference of a positive representative consumer?give reasons for ur answer.

Answer 1

yeh sure. Individual behaviour is very difficult to predict but group behaviour is extremely predictable. I'm already trying to work on it soI'll keep in touch . if you find any thing or you like to share something I'll be very happy to get in...

thanks!

Answer 2

I'm assuming you're are talking about indifference curves.  You can measure which good (x or y ) a person prefers why looking by how much a person is willing to substitute for each good at a certain u (utility). If they enjoy good x then they will be more willing to give up some of good y to get x.

Answer 3

IF everyone in the society is identicle or if everyone in society can be represented by some positive monotonic transformation of u(x,y)

This is because the Utility function represents the preferences and is only ordinal. Any monotonic transformation will represent the preference ordering as well as long as all the assumptions for defining a Utility function are met.

Answer 4

Sure.....I don't know "y" "u" are asking a question about "x".