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Which of the following is NOT an assumption regarding people's preferences in the theory of consumer behavior?
A. Preferences are complete.
B. Preferences are transitive.
Consumers prefer more of a good to less.
D. All of the above are basic assumptions about consumer preferences.
If a market basket is changed by adding more of at least one good, then rational consumers will:
A. rank the market basket more highly after the change.
B. more likely prefer a different market basket.
C. rank the market basket as being just as desirable as before.
D. be unable to decide whether the first market basket is preferred to the second or vice versa.
E. have indifference curves that cross.
Suppose that a market basket of two goods is changed by adding more of one of the goods and subtracting one unit of the other. The consumer will:
A. rank the market basket more highly after the change.
B. rank the market basket more highly before the change.
C. rank the market basket just as desirable as before.
D. any one of the above statements may be true.
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