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:

Bones

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Social Clock

The societal expectations that dictate the appropriate timing for major life events, such as marriage, parenthood, and retirement.

Maturational Cycle

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Empty Nest

The stage in a parent's life when their children have grown up and left home, which can lead to feelings of sadness, loss, or a shift in identity.