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ASSIGNMENT - TOPIC - Axioms of Consumer Choice and Preference
Questions -
Q1. Patrick Collins enjoys, among other things, eating snacks. She also enjoys reading Shakespeare. Collins is confronted with two baskets: Basket A, which contains several other goods and a package of snacks, and B, which contains identical quantities of the other goods as Basket A, but instead of the snacks, it contains a book by Shakespeare. When asked which basket she prefers, she replies, "I like them both, but snacks and a book by Shakespeare are so different that I simply cannot compare the two baskets." Determine whether Collins is obeying all the axioms of preference theory.
Q2. Differentiate explicitly between complete preference and transitive preference.
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