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Assumption of ordinal apporch

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Assumption of ordinal apporch

Posted by Ashutosh Tiwari 6 years, 3 months ago

CBSE > Class 11 > Economics

1 answers

Tamana Bansal☺☺ 6 years, 3 months ago

1.Consumer is rational so he want to maximize is satisfaction. 2.money income of consumer is given and doesn't change or we can say remain constant. 3.consumer consumes two commodities , which are close substitute of each other. 4. consumer always prefer more of a commodity as it offers him higher level of satisfaction this is due to monotonic preferences which implies that as consumption increases total utility also increases. 6. consumer preferences for two commodities or goods is well defined if consumer has less quantity of a good his intensity for that good will rise and vice versa.

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