(a) “Given the choice between skiing, snowboarding, and iceskating this Saturday
ID: 1150487 • Letter: #
Question
(a) “Given the choice between skiing, snowboarding, and iceskating this Saturday I can rank my options: 1. Snowboarding, 2. Skiing, 3. Iceskating.”
(b) “I will take two scoops of ice cream because two is always better than one.”
(c) “After a day of skiing, I prefer hot cocoa to spiced cider, and I prefer coffee to hot cocoa, and I prefer spiced cider to coffee.”
(d) “No, I am not indifferent about whether we stay in Friday night to watch a movie or whether we go iceskating with our friends, but I can’t decide which I prefer.”
Explanation / Answer
The axiom of completeness states that, with a set up of two goods, an individual will always prefer one good over the other. This means the individual will always gain more satisfaction by consuming one good over the other.
The axiom of transitivity states that, a bundle with choices A,B,C. If A is prefferred to B and B is prefferred to C, then A is always preffered to C.
The axiom of non satiation states that, for any bundle of a good more amount of that good is preffered to less.
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a) Here, the choices are ranked in order of its preferance. That is, Snowboarding is preferred to Skiiing, Skiing is preferred to Iceskating and Snowboarding is preferred to Iceskating. Thus this conforms the property of Transitivity.
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b) Here, it is given that two scoops of ice cream is always better than one, which means two scoops is more satisfactory than one. This conforms the property of non satiation.
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c) Here it is given that hot cocoa is preferred to spiced cider, spiced cider is preferred to coffee, coffee is prefferred to hot cocoa. Thus here, the property of transitivity is violated.
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d) Here it is given that, i am confused about my preferance over watching a movie or going to iceskating, but i am not indifferent about them. This violates the property of completeness.
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