Which assumption of consumer theory states that if the consumer prefers A to B, then he will not prefer B to A in another time period?

Transitivity

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Preference

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Rationality

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Consistency

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Solution

The correct option is C Consistency
According to the consistency theory, consumer will not change his preferences in another time period. So if he prefers commodity A over commodity B then he will never prefer B over A. It is one of the assumption of ordinal utility theory analysis.

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Similar questions

Consumer preferences are monotonic means :

(a) Cconsumer prefers less of both the goods

(b) Consumer prefers more of both the goods

(d) Both B and C

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