Which of the following examples correctly identifies preference reversals?
A) Alice starts using public transport when the price of gasoline increases.
B) Sarah's consumption of coffee increases substantially when the price of tea increases.
C) Terry decides on Monday that he would join music classes from Thursday, but refuses to do so on Thursday.
D) The extra utility that Tim derives from consuming additional units of ice cream decreases as he consumes more ice cream.
C
Economics
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In the permanent income hypothesis, income that does not persist for a long period of time is known as ________
A) current income B) transitory income C) insufficient income D) limited income
Economics
The concept of laissez faire calls for government intervention if market failure is evident.
Answer the following statement true (T) or false (F)
Economics