The following is an example of a preference relation which can be represented by a utility function but

cannot represented by a continuous utility function. This example is due to Uzawa.

2-1+x2 2
U(x)= 2- , if x
1
>=1,

x
2
<1
x+1
x
1
(1+ x
2
), otherwise

sketch the indifference curves for this preference relantioship. Argue formally that there doesnot exist a
continuous utility function representation by considering the point A=(2,1) and B=(3,1), which point is
preferred? Is It possible to have neighborhoods of A and B so that all points in the neighborhoods are
strictly preferred? Why or why not???