Consumer theory Flashcards
1
Q
Preferences usually satisfy which 4 properties?
A
Completeness
More is better
Transitivity
Convexity
2
Q
Completeness
A
Consumers can rank all possible combinations of bundles
3
Q
Transitivity
A
if you prefer A over B and B over C you should also prefer A over C.
Prevents circular trades
4
Q
Convexity
A
Consumers prefer variety over extremity
