There is a set of goods, $x=\left(x_{1}, x_{2}, \ldots x_{N}\right)$. Bruce can only afford $x_{1}, x_{4}, x_{N-1}$. Bruce directly reveal prefers $x_{1}$ over $x_{2}$ and $x_{2}$ over $x_{N-1}$ and indirectly reveal prefers $x_{1}$ over $x_{N-1}$.

Question

Quizplus · Accepted Answer

Bruce's direct preferences for $x_{1}$ over $x_{2}$ and $x_{2}$ over $x_{N-1}$, combined with the transitivity property of preferences, imply that Bruce indirectly prefers $x_{1}$ over $x_{N-1}$.

There Is a Set of Goods x=(x1,x2,…xN)x=\left(x_{1}, x_{2}, \ldots x_{N}\right)x=(x1​,x2​,…xN​) Bruce Can Only Afford

There Is a Set of Goods $x=\left(x_{1}, x_{2}, \ldots x_{N}\right)$ Bruce Can Only Afford