You need to rank at least 3 preferences before you can talk about consistent or inconsistent....
You need to rank at least 3 preferences before you can talk about consistent or inconsistent. Consistency requires you prefer A to B, B to C then you prefer A to C. If you prefer C to A then your preferences are not consistent.
Homework Answers
This is actually axiom of transitivity , where it is assumed that a consumer is rational and would not change preference ordering in different instances .
If a person prefers A over B ( A > B ) and B over C ( B > C ) . So the person will obviously select A when there is choice between A and C ( A > C ) . A is the best choice of that person and C being the least preferred one .
If the person prefers C over A then consistency or rationality is violated .
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You need to rank at least 3 preferences before you can talk
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