We assume that the representative consumer's preferences exhibit the properties that

a. each consumer has one strictly preferred good and that consumption and leisure are both normal goods.

b. more is always preferred to less and that each consumer has one strictly favored good.

c. consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundles.

d. they are convex and that more is not necessarily preferred to less.

Question

Myles Parker

Business

21 May, 02:09

We assume that the representative consumer's preferences exhibit the properties that

a. each consumer has one strictly preferred good and that consumption and leisure are both normal goods.

b. more is always preferred to less and that each consumer has one strictly favored good.

c. consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundles.

d. they are convex and that more is not necessarily preferred to less.

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Answers (1)

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Jacqueline Thompson · Answer 1

c. consumption and leisure are both normal goods and that the consumer likes diversity in his or her consumption bundles.

Explanation:

A consumer's preference can determine the consumer utility properties between the different periods and can be measured by the tastes and preference by comparing the opportunity costs of that one item when every you buy an item. The consumption and the leisure are both the normal goods hat the consumer likes to have diversity in his consumption patterns and have a utility related to them.