ECON3010 T2 Questions.pdf - ECON3010 Advanced...

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ECON3010 Advanced Microeconomics Metin Uyanık Tutorial #2 Questions Semester 1, 2021 1. A binary relation R on a set X is called reflexive if xRx for all x in X . The relation R is transitive if xRy and yRz implies xRz for all x, y, z in X . The relation R is called complete if xRy or yRx for all x, y in X . Which of the following would you expect to be reflexive? transitive? complete? (a) xRy is interpreted as ” x is less than or equal to y ”. (b) xRy is interpreted as ” x is heavier than y ”. (c) xRy is interpreted as ” x is the mother of y ”.
2. Jack strictly prefers wine ( w ) to beer ( b ), but is indifferent between beer and coke ( c ). (a) Write down a preference ordering % (representing at least as good as) for Jack that is complete and transitive and respects what is written above about his strict preference of wine over beer and his indifference between beer and coke. (b) Define the strict preference (better than) by x y iff x % y and not y % x . What is included in ?

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