Question
A stockholder named Sue must cast a vote for chair of the board. Sue prefers Mr. Lee to Ms. Doe, Ms. Doe to Mr. James,
A stockholder named Sue must cast a vote for chair of the board. Sue prefers Mr. Lee to Ms. Doe, Ms. Doe to Mr. James, and Mr. James to Mr. Lee.
a. Are Sue's preferences consistent with our assumptions about consumer behavior? Explain.
Hint: Check whether the preferences satisfy the properties or assumptions about the consumer behavior.
b. Suppose they are voted on in pairs and Lee and Doe were paired first.If all stockholders had the same preferences as Sue, who would win the appointment as chair of the board? Explain.
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
