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2022 PEA Q7

A non-transitive preference relation can be represented by a utility function

Reveal answer and solution

Answer

D

Solution

  1. 1

    If u:XRu : X \to \mathbb{R} represents \succsim, then xyu(x)u(y)x \succsim y \Longleftrightarrow u(x) \geq u(y).

  2. 2

    Since \geq on R\mathbb{R} is transitive, the induced preference must also be transitive.

  3. 3

    Hence a non-transitive preference relation cannot be represented by any utility function.

Answer structure / marking notes

Transitivity is necessary (though not sufficient) for utility representation.

Content note

Imported from public/resources/isi/msqe/solutions/pea/2022/ISI_MSQE_PEA_2022_Solutions.tex. Question wording is retained from the available local TeX source; incomplete option blocks or ambiguous source status are flagged for review.