Question

What is an example for a type of taste that cannot be represented by a continuous utility function! Write only a single word.

Answer 1

Continuous Utility Function
Utility function refers to the preference that a consumer set above the other options available. The satisfaction from consuming a particular commodity will be different for different goods. Consumer will make preferences and obtain utility from the goods which satisfy them the most. Even though utility will not remain same, the function where the utility takes a constant path is analyzed as continuous utility function. That is, if a consumer makes any preference under the utility he or she derives is continuous and transitive for any of other commodities provided, the function is considered as continuous utility function.
Inferior goods are examples of a taste that is out of continuous utility function. The utility or the preference may not be constant always whenever a better substitute is provided which the consumer can bear. Thus, utility function of inferior goods is not transitive. A change in income could reduce or increase the utility towards the commodity. So, the utility function of inferior goods cannot be considered continuous. Also, the continuous function depends upon individual preferences. When the utility of some food products are constant others are not always. For example, a person may not always wish to purchase KFC everyday but having a constant utility on a product like rice. The KFC can be considered as a commodity out of the function where the other may follow a continuous utility function.