Which of the following is not an assumption of the theory of consumer behavior described in this chapter?
A)The consumer has to make purchasing decisions within a given budget constraint.
B)The consumer experiences diminishing marginal utility from consuming goods.
C)The consumer's tastes and preferences continually change within the period studied.
D)The consumer aims to get maximum total utility out of a given budget.

Question

Quizplus · Accepted Answer

The theory of consumer behavior typically assumes that consumers' tastes and preferences remain constant within the period studied, making option C incorrect as it suggests the opposite.

Which of the Following Is Not an Assumption of the Theory