Question

Find each of the Definitions

a. Transitive preferences

b. Reflexive preference

c.  Marginal utility

Answer 1

Ans A) Transitive preferences- When the person or a group want to have a Transitive preference ,then instead of choosing from the options a to b and b to c , they must go for a to c.This type eliminates cycle of preferences.It help us to allot numbers to preserve the ordering of ranks.

B) Reflexive preferences - This type of preferences are complete. It means that with any number of achievable bundle of products, consumer has the ability to decide which product is preferable than other and then giving them ranks according to the preferences. By the word Reflexive , it means that whichever good consumer takes, its goodness will not be less than itself or we can say that any bundle is on a par with itself.eg- I like one orange and one guava at the minimum as well as one orange and one guava.

C) Marginal utility- The word utility means the satisfaction the person gets with consumption of goods. Marginal utility means the change in satisfaction level with the increase or decrease in consumption of goods.It represents the extra satisfaction the consumer gets with the additional consumption of good.Marginal utility can be positive and negative both.If marginal utility rises with additional use of good it is called Positive marginal utility and if utility level falls with usage of additional unit, it's called negative marginal utility.