Question 2

Consider a society with three citizens call them P1, P2 and P3. The citizens have to collectively choose among three alternatives call them a, b, c. Suppose the preferences of the citizens are the following: P1:a>b>c P2:b>c>a. P3:c>b>a. Assume that the majority rule is used to arrive at society's preferences/ranking over these different alternatives. i. What is the social ranking of the alternatives? Is there any violation of transitivity? Is there a Condorcet winner? (10 marks) ii. Recall Arrow's Impossibility Theorem. Is your answer to part i consistent with that theorem? Explain in not more than 100 words. (10 marks)