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We assumed at the beginning of the chapter that a consumer's preferences must be transitive, but we hinted that there might be interesting exceptions. Here
We assumed at the beginning of the chapter that a consumer's preferences must be transitive, but we hinted that there might be interesting exceptions. Here are two: (a) A consumer likes sugar in her coffee, but she simply cannot taste the difference between a cup of coffee with n grams of sugar in it and a cup of coffee with n + 1 grams. Suppose a teaspoon of sugar is 6 grams, and suppose she takes her coffee with one teaspoon of sugar. Why does this violate transitivity?
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