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The Logic of Chained Indifference
An economist is trying to determine if a student is indifferent between two study plans: Plan A (20 hours of study, 8 hours of leisure) and Plan D (23 hours of study, 5 hours of leisure). The economist finds that the student is indifferent between Plan A and an intermediate Plan B. The student is also indifferent between Plan B and another intermediate Plan C. Finally, the student is indifferent between Plan C and Plan D. Explain the economic principle that allows the economist to conclude that the student must also be indifferent between the initial Plan A and the final Plan D.
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Ch.3 Doing the best you can: Scarcity, wellbeing, and working hours - The Economy 2.0 Microeconomics @ CORE Econ
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