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Commerce · Q1204

Economics

Graduate and Post Graduate · Commerce · question 1204

Q1204

The ordinal utility analys is of consumer behaviour is considered superior to the cardinal utility analysis mainly due to the

A.
Assumption of the rationality of consumer behaviour
B.
Possibility of the derivation of consumer demand
C.
Bifurcation of price effects into income and substitution effects
Answer
D.
Consideration of the available limited resources for satisfying consumer demand

Answer: Option C

Solution

Answer: Option C
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