The Assumption That Preferences Are Transitive Requires the Consumer

question 36

Multiple Choice

The assumption that preferences are transitive requires the consumer:

• A)to rank any two baskets.
• B)to say that basket is preferred to basket if basket is preferred to basket and basket is preferred to basket .
• C)to rank a basket with more units of all goods higher than a basket with fewer units of all goods.
• D)to have a diminishing marginal rate of substitution.