We Assume That the Representative Consumer's Preferences Exhibit the Properties

question 2

Multiple Choice

We assume that the representative consumer's preferences exhibit the properties that

• A)more is always preferred to less and that each consumer has one strictly favourite good.
• B)more is always preferred to less and that consumers do not like diversity in his or her consumption bundle.
• C)consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundle.
• D)they be convex and that more is always preferred to less.
• E)each consumer has one strictly preferred good and that consumption and leisure are both normal goods.

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Definitions:

Segmentation Variable

A characteristic used to divide a market into clearly identifiable segments, such as age, gender, income, or lifestyle.

Benefit

The advantage or positive impact that one receives from using a product, service, or undertaking an action, offering improvement or value.

Trial Close

A sales technique where the seller asks potential buyers questions that assume the sale has been made to gauge their readiness to complete the purchase.

Features And Benefits

Explanation highlighting product or service attributes (features) and how they fulfill users' needs or desires (benefits).