According to John Kenneth Galbraith, the theory of consumer demand is based on the following broad assumption(s):
I. Socialism will work in all societies because consumers are willing to share their wealth.
II. The urgency of wants does not diminish as more of them are satisfied.
III. Wants originate in the personality of the consumer.
A)I only
B)I and II
C)III only
D)II and III

Question

Quizplus · Accepted Answer

The assumption that consumers' wants originate in their personality is consistent with the theory of consumer demand, as is the assumption that the urgency of wants does not diminish as more are satisfied. The assumption that socialism will work in all societies, however, is not related to the theory of consumer demand and is a separate economic and political issue.

According to John Kenneth Galbraith, the Theory of Consumer Demand