7.1. Consider preferences defined over the nonnegative orthant by (11, 12) ► (y1, Y2) iff x1+x2

Extracted text: 7.1. Consider preferences defined over the nonnegative orthant by (11, 12) ► (y1, Y2) iff x1+x2 < yı+y2.="" do="" these="" preferences="" exhibit="" local="" nonsatiation?="" if="" these="" are="" the="" only="" two="" consumption="" goods="" and="" the="" consumer="" faces="" positive="" prices,="" will="" the="" consumer="" spend="" all="" of="" his="" income?="" explain.="" 7.2.="" a="" consumer="" has="" a="" utility="" function="" u(r1,="" 12)="max{#1," 12}.="" what="" is="" the="" consumer's="" demand="" function="" for="" good="" 1?="" what="" is="" his="" indirect="" utility="" function?="" what="" is="" his="" expenditure="" function?="">