I think this is a wrong example, first of all its not clear whether John is an entity in a bigger set or a set itself, also where are the relationships X ε W and W ε Y in the above example, kindly be clear about the example you mentioned.
If human is a set of all humans and the set of all humans belongs to the set of all species is it not the case that the human belongs to the set of all species, representing it via Venn Diagram says that it is but I am not sure what you intend to say is true or not. A good explanation might help
I was solving a question which is the following :
Give examples of 3 sets W,X,Y such that W ε X and X ε Y but W doesn't ε Y . I solved the question by taking the following 3 sets:
W = {1,2}
X = { 7 , 8 , W}
Y = { 3 , 4 , X}
looking it from the theory point of you I find that W is not...