If an individual prefers X to Y and prefers Y to Z then the consumer must also prefer X to Z.This property is called:
A) transitivity.
B) completeness.
C) the ranking principle.
D) the choice principle.

Question

Quizplus · Accepted Answer

This property is called transitivity which means that if a consumer has a preference for X over Y and Y over Z, then the consumer will also prefer X over Z. This is a fundamental principle of rational consumer behavior and is an important assumption in the theory of consumer choice.

If an Individual Prefers X to Y and Prefers Y