Practice question · Match the pairs
Match each preference axiom to its meaning.
- Completeness
- Transitivity
- Non-satiation
- Convexity
- No preference cycles:
- More is always better
- Every pair of bundles can be ranked
- Mixtures are preferred to extremes
Hints
- Each axiom rules out a different kind of inconsistency.
- One forbids preference cycles among three bundles.
Show the answer
- Completeness → Every pair of bundles can be ranked
- Transitivity → No preference cycles:
- Non-satiation → More is always better
- Convexity → Mixtures are preferred to extremes
Why
The four pillars of rational consumer theory, they generate well-behaved indifference curves.
Practise Consumer Preferences
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