Which of the following properties is not assumed to hold for a typical consumer's preferences?
A)Nonsatiation
B)Completeness
C)Transitivity
D)Neutrality

Question

Quizplus · Accepted Answer

Neutrality is not assumed to hold for a typical consumer's preferences. Neutrality means that the consumer does not have any preference for one bundle over another if they contain the same goods and services, but are labeled differently. For example, if a consumer prefers a bundle labeled "good A and good B" and is indifferent between that bundle and a bundle labeled "good C and good B", then the consumer is said to have neutral preferences. However, many consumers may have preferences for particular brands or labels of goods and services, making the assumption of neutrality invalid for them.

Which of the Following Properties Is Not Assumed to Hold