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 to the bundle if and only if . 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.

Question

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  to the bundle  if and only if  . 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.

Quizplus · Accepted Answer

The Answer of 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  to the bundle  if and only if  . 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.

Mac Rowe Doesn't Sweat the Petty Stuff