The theory of consumer behavior is based on certain assumptions. The set of four basic assumptions includes:
A) completeness.
B) transitivity.
C) intransitivity.
D) Both A and B are correct.
E) Both A and C are correct.

Question

Quizplus · Accepted Answer

Completeness and transitivity are two of the basic assumptions of the theory of consumer behavior. Incompleteness or intransitivity would violate these assumptions and make the theory invalid. Therefore, choice D, "Both A and B are correct," is the best choice.

The Theory of Consumer Behavior Is Based on Certain Assumptions