If Preferences Exhibit the Property of Transitivity, Then

question 399

Multiple Choice

If preferences exhibit the property of transitivity, then

• A)the preferences are irrational.
• B)individuals prefer more government involvement in private markets than do people whose preferences are not transitive.
• C)preferences change over time more quickly than when preferences are not transitive.
• D)preferences satisfy one of the properties assumed to be desirable by Kenneth Arrow in Social Choice and Individual Values.

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Definitions:

Total Profit

The overall financial gain made by a business after all expenses have been subtracted from the total revenues.

Demand Elasticities

Measures the responsiveness of demand for a good or service to changes in its price, income levels, or other factors.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on factors like demand, cost of service, or market competition.

Single-Price Monopoly

A market condition where a monopolist sets one price for all consumers of its product, without price discrimination.