Based on Coach Steroid’s rule and the facts that Wilbur Westinghouse weights 340 pounds, runs very slowly, and is fairly obedient; Harold Hotpoint weighs 240 pounds, runs very fast, and is very disobedient and Jerry Jacuzzi weighs 150 pounds, runs at average speed, and is extremely obedient.
a) Coach Steroid’s “at least as good as” operator is not transitive. Note: WW is “at least as good as” HH and HH is “at least as good as” JJ. So by transitivity this SHOULD imply that WW is “at least as good as” JJ, but in fact, JJ is “strictly preferred” to WW, so we have a violation of transitivity.
b) Coach Steroid’s new preferences are not complete with respect to the “at least as good as” operator over these three guys.
c) Coach Steroid’s new preferences are transitive with respect to the “at least as good as” operator over these three guys, since you can not prove that transitivity will be violated.
i) Coach Steroid’s new preferences are transitive with respect to the “at least as good as” operator over the entire team, since if it were ever true that Abe is “at least as good as” Betty and Betty is “at least as good as” Charlie, then it would have to be the case that Abe is “at least as good as” Charlie. You could not construct a violation.
- Draw indifference curves and preference direction arrows depicting each of the following preferences:
a) I can't tell the difference between Budweiser beer and Miller beer but I like them both.
b) I love hummus but hate tabouli.
c) I like cheesecake, but after a point I dislike it.
- For the two goods X and Y Janu has the utility function u(X, Y) = X + Y.
a) Janu's MRS = MUx/MUy = 1.
Bori has the utility function v(X, Y) = X2 + 2XY + Y2
b) Bori's MRS = MUx/MUy = 1.
c) Bori and Janu have the same preferences. Note: Bori’s utility function is simply Janu’s utility function squared.