Get premium membership and access questions with answers, video lessons as well as revision papers.
1. Rationality assumption - consumer is assumed rational and therefore his or her objective is to maximise utility subject to the constraints imposed by his or her income and commodity prices.
2. Consistency of choice - it is assumed that the consumer is consistent in choice ,that is,if at one period he prefers bundle A to B, in any other period he should prefer the same if all the bundles are available.
3. Assumption of ordinal utility - the consumer is able to rank his preference according to the satisfaction of each basket of commodities.
4. Completeness of choice - a consumer must be able to make a choice with regard to their preference.
5. Transitivity of choice - if bundle A is preferred to B which is preferred to C , then bundle A must be preferred to C.
Jonmhumble answered the question on October 22, 2017 at 19:42
- State and explain factors influencing price elasticity of demand(Solved)
State and explain factors influencing price elasticity of demand.
Date posted: October 22, 2017. Answers (1)
- State and explain types of income elasticity of demand(Solved)
State and explain types of income elasticity of demand.
Date posted: October 22, 2017. Answers (1)
- Explain the importance of planning in an organization(Solved)
Explain the importance of planning in an organization.
Date posted: October 22, 2017. Answers (1)
- State and explain characteristics of monopoly type of market(Solved)
State and explain characteristics of monopoly type of market.
Date posted: October 22, 2017. Answers (1)
- Outline advantages of free enterprise economic system(Solved)
Outline advantages of free enterprise economic system.
Date posted: October 22, 2017. Answers (1)
- Outline the characteristics of centrally planned economic system(Solved)
Outline the characteristics of centrally planned economic system.
Date posted: October 22, 2017. Answers (1)
- Outline the challenges of young population.(Solved)
Outline the challenges of young population.
Date posted: October 21, 2017. Answers (1)
- Outline the problems associated with output approach as a way of measuring national income(Solved)
Outline the problems associated with output approach as a way of measuring national income
Date posted: October 21, 2017. Answers (1)
- What are the sources of monopoly power?(Solved)
What are the sources of monopoly power?
Date posted: October 21, 2017. Answers (1)
- State and explain the factors that causes changes in interest rates in an economy?(Solved)
State and explain the factors that causes changes in interest rates in an economy?
Date posted: October 20, 2017. Answers (1)
- State and explain the process of human resource planning(Solved)
State and explain the process of human resource planning
Date posted: October 20, 2017. Answers (1)
- Outline the characteristics of human resource management(Solved)
Outline the characteristics of human resource management
Date posted: October 20, 2017. Answers (1)
- Outline aims of human resource management(Solved)
Outline aims of human resource management
Date posted: October 20, 2017. Answers (1)
- What challenges is the government of Kenya facing currently pertaining unprecedented economy?(Solved)
What challenges is the government of Kenya facing currently pertaining unprecedented economy?
Date posted: October 19, 2017. Answers (1)
- What are the advantages of increasing population?(Solved)
Required to provide 5 advantages well explained
Date posted: October 18, 2017. Answers (1)
- What are the policies to improve agricultural sector?(Solved)
What are the policies to improve agricultural sector?
Date posted: October 18, 2017. Answers (1)
- State and explain the non- tariffs forms of protectionism(Solved)
Give 5 well explained poins
Date posted: October 18, 2017. Answers (1)
- What are the problems likely to be encountered by a country with ageing population?(Solved)
What are the problems likely to be encountered by a country with ageing population?
Date posted: October 18, 2017. Answers (1)
- Outline the advantages of private foreign investment(Solved)
Outline the advantages of private foreign investment
Date posted: October 18, 2017. Answers (1)
- List and explain factors that affect consumer sovereignty(Solved)
List and explain factors that affect consumer sovereignty
Date posted: October 18, 2017. Answers (1)