Which of the following assumption is violated if consumer preferences exhibit cyclicality?
Tap an option to check your answer.
1 mark, −0.33MicroeconomicsConsumer preferences and utilityPreference axioms and rationalityEasyabout 1 min
UoH 2017 Question 4: Consumer preferences and utility
Answer and worked solution
Checking your account…
Consumer preferences and utility has come up 93 times in 7 exams since 2007.
What this question tests
This question is on Preference axioms and rationality, part of Consumer preferences and utility in Microeconomics.
The assumptions that make preferences well behaved: completeness, transitivity, monotonicity, continuity and convexity.
TestStop has 13 past-paper questions on this subtopic.
Similar questions from other papers
- Which among the following is not an assumption of Indifference Curve?
- Madhu's utility function is given by U=max (2C,3F), where C represents the amount of cloth and F represents the amount of food. Her preferences DO NOT satisfy which one…
- Which of the following is NOT the assumption of the Revealed Preference Hypothesis?
- If the demand function is given as P = 110 - Q² and market equilibrium is attained at P₀ = 29 and Q₀ = 9, calculate the consumer surplus.
- A Constant Elasticity of Substitution (CES) utility function is given as: U_(CES)(z₁,z₂) = 1/δ(z₁^δ + z₂^δ) where z₁ and z₂ are two goods, and δ ≤ 1, δ ≠ 0. A…
Question from the UoH 2017 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.