Assumptions of completeness-transitivity-pig theory demand

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With respect to three goods- ice cream, green tea, and digital cameras, what does it mean when your preference for, and satisfaction gained from, these three goods are consistent with the assumptions of completeness, transitivity, and (What I call) the “pig theory” demand.

1) Sean and Samantha are in consumer equilibrium. CDs (on the “X” axis) cost 60 dollars each and cassette tapes only 15 dollars each. Samantha consumes CSs and cassettes. Sean consumes only cassettes.

o What can you infer about Seans MRS (marginal rate of substitution) of CDs and tapes? Explain.

o What about Samanthas MRS? Explain.

Reference no: EM131090474

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