Question 1

Explain how it would be possible to cheat someone who had intransitive preferences.Be explicit about what you would offer him if you were trying to exploit his intransitivity and what he would do in response.

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Question 2

I prefer 6 apples and 1 orange to 5 apples and 2 oranges.My preferences

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Question 3

Draw graphs with quantities of pepperoni pizza on the horizontal axis and quantities of anchovy pizza on the vertical axis to illustrate the following situations.In each case draw two different indifference curves and make a little arrow pointing in the direction of greater preference.
a.Marvin loves pepperoni pizza and hates anchovy pizza.
b.Mavis hates anchovy pizza and is completely indifferent about pepperoni pizza.

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Question 4

Suppose that there are two commodities and a consumer prefers more to less of each good.If the consumer has transitive preferences, can her in difference curves cross? Sketch a brief proof of your answer, and illustrate with a diagram.

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Question 5

Mac Rowe doesn't sweat the petty stuff.In fact, he just cannot detect small differences.He consumes two goods, x and y.He prefers the bundle (x, y)to the bundle (x', y')if and only if (xy - x'y' > 1).Otherwise he is indifferent between the two bundles.
a.Show that the relation of indifference is not transitive for Mac.(Hint: Give an example.)
b.Show that the preferred relation is transitive for Mac.

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Question 6

Belinda loves chocolate and always thinks that more is better than less.Belinda thinks that a few piano lessons would be worse than none at all, but if she had enough piano lessons to get good at playing the piano, she would prefer more lessons to less.Draw a graph with piano lessons on the horizontal axis and chocolate on the vertical axis.On your graph sketch two indifference curves for Belinda that would be consistent with this story.Label the better of the two indifference curves AA and the worse one BB.

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Question 7

Blanche Carter has devised a system for rating the males in her economics class.She cares about their intelligence and their looks.She has ranked each male on a scale of 1 to 5 for intelligence and 1 to 3 for looks.She defines a preference relation, R, as follows: xRy if boy x scores at least as high as boy y in either looks or intelligence.Give an example to show that Blanche's method of determining preferences might not lead to transitive preferences.

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Question 8

If good X is measured on the horizontal axis and good Y on the vertical, what can you say about the preferences of someone whose indifference curves are
a.parallel to the Y axis?
b.positively sloped with more desirable indifference curves as one moves to the right?
c.negatively sloped with more desirable indifference curves as one moves to the left?

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Question 9

Coach Steroid likes his players to be big, fast, and obedient.If player A is better than player B in two of these three characteristics, Steroid will prefer A to B.Three players try out for quarterback.Wilbur Westinghouse weighs 320 pounds, runs very slowly, and is quite obedient.Harold Hotpoint weighs 240 pounds, runs extremely fast, and is extremely disobedient.Jerry Jacuzzi weighs 150 pounds, runs at average speed, and is extremely obedient.Does Coach Steroid have transitive preferences? Explain your answer.

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Quiz 2: Preferences-Part A

Explain how it would be possible to cheat someone who had intransitive preferences.Be explicit about what you would offer him if you were trying to exploit his intransitivity and what he would do in response.

I prefer 6 apples and 1 orange to 5 apples and 2 oranges.My preferences

Suppose that there are two commodities and a consumer prefers more to less of each good.If the consumer has transitive preferences, can her in difference curves cross? Sketch a brief proof of your answer, and illustrate with a diagram.