a) a consumer likes sugar in her coffe, but she simply cannot taste the differen

Question

a) a consumer likes sugar in her coffe, but she simply cannot taste the difference between a cup of coffe with n grams of sugra in it and a cup of coffee with n+1 grams. Suppose a teaspoon of sugar is 6 grams, and suppose she takes her coffe with one teaspoon of sugra. why does this situation violate trasitivity?

b) lets call a committee of 3 people a "consumer" (groups of people often act together as "consumer") our committe makes decisions using majority voting. when the committee members compare two alternatives, a and b, say, they simply take a vote, and the winner is said to be "preferred" by the committe to the loser. suppose tha Person 1 likes a best, b second best, and c third best, which we can write as: person 1: a,b,c. assumer the preference of the other two people are: person 2: b,c,a and person 3: c,a,b. show that in this example the committee preferences produced by majority voting violates transitivity. show further that whoever is chair of the commettee can always get he way is she nows the others preferences and uses her agenda-setting powers stategically

Explanation / Answer

a)

transitivity is followed in econimcs. transitivity says that if Result A is better than Result B , result B is better than Result C then Result A is better than that of C. however its not required that its followed always. there are exceptions to this rule and human behaviuor difies this majority rule. this is known as Condorcet paradox. The failure of majority rule to produce transitive preferences for society is possible under this. The Condorcet paradox shows that majority rule fails to produce a ranking of outcomes that always satisfies

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