The theory of consumer behavior assumes that consumers can compare and rank all possible market baskets. This assumption is called:
A) completeness.
B) transitivity.
C) nonsatiation (more is preferred to less).
D) rationality.

Question

Quizplus · Accepted Answer

Completeness assumes that consumers can make a comparison between all possible market baskets. It implies that consumers can determine which basket is best for them and rank them in order of preference. This assumption is fundamental to many aspects of economic theory, including the derivation of the demand curve and the analysis of consumer welfare.

The Theory of Consumer Behavior Assumes That Consumers Can Compare