To Ensure a Well-Defined Solution to the Consumers' Intertemporal Choice

question 9

Multiple Choice

To ensure a well-defined solution to the consumers' intertemporal choice problems, we must assume that consumers' preferences exhibit the properties that

• A)the consumer likes diversity and that more is sometimes preferred to less.
• B)they are all identical and that more is always preferred to less.
• C)more is sometimes preferred to less and that first-period consumption and second-period consumption are both normal goods.
• D)more is sometimes preferred to less and that first-period consumption and second-period consumption are both inferior goods.
• E)more is preferred to less and that the consumer prefers diversity.

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Definitions:

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A visual artist who specializes in enhancing text or concepts with decorative or explanatory imagery.

Gesture

A movement of part of the body, especially a hand or the head, to express an idea or meaning.

Reference Point

A basis or standard for evaluation, assessment, or comparison; a criterion.