There is only one consumption good in the world (cities). Karen is moving – suppose that her preferences over cities are described as follows: she strictly prefers city A to city B if either (1) the average rent in city A is cheaper than in city B, or (2) the average rent is the same in both cities, and there are more good restaurants in city A than in city B. Are these preferences transitive? Justify your answer.
There is only one consumption good in the world (cities). Karen is moving – suppose that her preferences over cities are described as follows: she strictly prefers city A to city B if either (1) the average rent in city A is cheaper than in city B, or (2) the average rent is the same in both cities, and there are more good restaurants in city A than in city B. Are these preferences transitive? Justify your answer.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 5SQP
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Question 6: Transitivity
There is only one consumption good in the world (cities). Karen is moving – suppose that her preferences
over cities are described as follows: she strictly prefers city A to city B if either (1) the average rent in city
A is cheaper than in city B, or (2) the average rent is the same in both cities, and there are more good
restaurants in city A than in city B. Are these preferences transitive? Justify your answer.
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