0 0 20 0 0 X1 0 Figure 22 Diagram for questions 5 and 7 Figu

0 0 20 0 0 X1 0 Figure 2.2: Diagram for questions 5 and 7 Figure 2.2 shows the sets which are preferred to the point xo. Which of the figures satisfy non- satiation? (a) a (b) b (d) d

Solution

Non satiation describes the situation where more of any good is better.

Since, the coloured area shows the sets which are preferred to Xo so, figures A and B satisfy non satiation.