1. What are the properties of a typical consumer’s preference ordering?

2. For each property, give an example from yourself.

3. What is the difference between the law of diminishing marginal utility and the law of
diminishing marginal rate of substitution? Give an example to illustrate the difference.

Your score is based on your explanation. Explain as clearly as you can.

The properties of a typical consumer's preference ordering include:

Completeness: the consumer is able to compare any two options and say
which one they prefer.
Transitivity: if the consumer prefers option A to option B, and option B
to option C, then they must also prefer option A to option C.
Continuity: small changes in the characteristics of an option will not
cause a large change in the consumer's preference for that option.
More is better: The consumer will always prefer more of a good over
less of a good, all else being equal.
Diminishing marginal rate of substitution: As a consumer obtains more
of good X, the amount of good Y the individual is willing to give up to
obtain another unit of good X decreases

An example of each property from myself:

Completeness: I can compare different types of ice cream and say which
one I prefer. For example, I prefer chocolate ice cream over vanilla ice
cream.
Transitivity: I prefer rock music over country music and country music
to jazz music. So I prefer rock music over jazz music.

Continuity: I would not change my preference for a car significantly if it

had a different color or smaller wheels. If a car is a convertible, I would
still prefer it over a hardtop car.

More is better: I prefer to visit more countries than less, even though I
will not have as much time to explore or enjoy each one. I would rather
have the opportunity to experience many different cultures and places
even if it means traveling for shorter periods of time.

Diminishing marginal rate of substitution: Initially, I will be willing to

trade one apple for two oranges, because I value oranges more than
apples. However, as I continues to consume more oranges, eventually I
will be willing to trade one apple for one orange, or even less, because I
value apples more than oranges.

The law of diminishing marginal utility states that as a consumer acquires more units of
a good or service, the additional satisfaction or utility that they derive from each
additional unit will decrease. This means that the first unit of a good or service will
provide the most satisfaction, and each additional unit will provide less and less
satisfaction. For example, a consumer may be extremely happy with the first slice of
pizza they eat, but each additional slice will provide less and less satisfaction.

The law of diminishing marginal rate of substitution, on the other hand, refers to the
trade-offs that a consumer is willing to make between two goods or services. The law
states that as the consumer acquires more units of one good or service, the additional
units will have to be compensated by a decreasing quantity of the other good or service
for the consumer to maintain the same level of satisfaction. For example, a consumer
may be willing to trade one hour of leisure time for $10 in income, but as they acquire
more income, the consumer will be willing to trade less and less leisure time for each
additional $10 in income.