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Commerce · Q898

Economics

Graduate and Post Graduate · Commerce · question 898

Q898

Ordinal utility analysis of the consumer's behaviour is considered superior to the cardinal utility analysis mainly due to

A.
assumption of the rationality of the consumer's behaviour
B.
possibility of the derivation of the consumer's demand
C.
bifurcation of price effects into income and substitution effects
Answer
D.
consideration of the available limited resources for satisfying consumer's demand

Answer: Option C

Solution

Answer: Option C
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