ECON306 Chapter 4: Consumer Choice

Market basket

Bundle or combination of goods

Economists assume that consumers have a set of tastes or preferences that guide them in choosing between goods, and these tastes ____ among individuals or groups

may differ substantially

What are the different preference relation symbols

insert weakly prefers, strictly prefers, and indifferent symbols

What are the three assumptions made about consumers’ choices

completeness, transitivity, and more is better