Can you state assumptions and violations of each in consumer preference?

i came across such a question in theory of consumer behavior

Answer:
monotonicity (more is good) - violated if you have a saturation point

transitivity - if A is better than B, and B is better than C, then A must be better than C.

Independence of Irrelevant Alternative - if you choose A out of (A,B), then you can't choose B out of (A,B,C). Violation - steak and fish restaurant - you choose meat in one and fish in another, even though steak at fish restaurant is very good.

Completeness - given any A and B, you can say wether you prefer one or other or they are equal. Violations are kinda hard to come by.

The answers post by the user, for information only, FunQA.com does not guarantee the right.



More Questions and Answers:
  • Role of the central bank(reserve bank of india) in any economy with special reference to the indian scenario?
  • Unrestrained Capitalism leads to Socialism?
  • Should the Fed cut interest rates to help boost the housing market, and the economy?
  • Economics questions.. ehh. need help =[?
  • What is the meaning of gini multiplier?
  • Case related to the exploitation of consumers in india?
  • . Name five (5) of the many the economic benefits brought about by globalization in our country. How substan?
  • What is the need of consumer awareness???
  • How much money does it takes to create a $1, $5, and $10 bill?
  • How was communism started?