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Commerce · Q578

Economics

Graduate and Post Graduate · Commerce · question 578

Q578

Which one of the following is not an assumption of the theory of revealed preference developed by P. A. Samuelson?

A.
There is transitivity in consumer's preferences
B.
There is consistency of choice in consumer's behaviour
C.
Consumer always behaves rationally to maximise his satisfaction from a given income
Answer
D.
Consumer prefers a combination of more goods to less in any situation

Answer: Option C

Solution

Answer: Option C
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