Harry Tells You That He Prefers Pepsi to Coke, Coke

question 57

Multiple Choice

Harry tells you that he prefers Pepsi to Coke, Coke to 7-UP, and 7-UP to Pepsi. This violates what assumption made when analyzing consumer preferences?

• A) that more is better
• B) that there is a diminishing marginal rate of substitution
• C) that consumers are rational
• D) that consumers are able to choose among all the combinations of goods and services available

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Definitions:

Labels

Tags or names applied to someone or something for identification or to categorize them based on certain characteristics or qualities.

Typifications

Generalized concepts or perceptions that people use to categorize objects, individuals, or events based on common characteristics.

Delinquent

A term often used to describe a minor who engages in illegal or antisocial behaviors.

Moral Panic

A widespread feeling of fear exaggerated by the media or public figures about an issue that threatens the moral standards of society.