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Denise Is Shopping for Lobsters and Eclairs

Question 6

Multiple Choice

Denise is shopping for lobsters and eclairs. When she faces budget line b1, she chooses market basket A over market basket B. When she faces budget line b2, she chooses basket B over basket C. Which assumption of consumer theory helps us determine Denise's preference ordering over basket A and basket C?


A) Completeness
B) More is better than less
C) Transitivity
D) Convexity

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