When Preferences Are Transitive, Consumers Are Able To

question 11

Multiple Choice

When preferences are transitive, consumers are able to:

• A) understand how much more one product is preferred over another product.
• B) rank order the desirability of various goods and services.
• C) need not know that one product is preferred to another product.
• D) understand how much less preferred one product is versus another product.

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Definitions:

Dry Climate

A climate characterized by low precipitation throughout the year, leading to arid conditions and limited vegetation.

Water Shortages

Situations where the available water supply is unable to meet the water demand, often due to drought, overuse, or contamination.

Volcanic Activity

The process of magma rising to the surface, resulting in eruptions that may release lava, pyroclastic material, and gases.

Oil Field

The region in the subsurface that contains petroleum, especially oil; also the projection of that area to the surface.