Which of the following is not a basic assumption underlying the theory of consumer behavior?
A)Consumers prefer more to less.
B)Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers.
C)Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good.
D)Consumers have well-behaved preferences, that is, preference orderings are complete.

Question

Quizplus · Accepted Answer

This assumption is more in line with the theory of interdependent consumer behavior, which takes into account the influence of other consumers on an individual's preferences. However, the theory of consumer behavior assumes that consumer preferences depend only on their own consumption and not the consumption of others.

Which of the Following Is Not a Basic Assumption Underlying