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Mac Rowe Doesn't Sweat the Petty Stuff

Question 10

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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 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. to the bundle 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. if and only if 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. . 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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a. Consider the bundles A = (1, 1), B = ...

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