58 591
Assignments Done
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Microeconomics Question for Kent

Question #8378
1. (a) What do the choice-based and the preference-based approaches to consumer be-
haviour have in common and how do they di er?
(b) Is the choice-based approach useful? Defend your answer carefully.
Expert's answer
A preference-based approach (dominant model) Assumes the decision maker has a preference relation
over the set of possible choices that satisfies a rationality axiom.

A choice-based approach
Focuses directly on the choice behavior imposing consistency restrictions (parallels the rationality axiom of
the preference-based approach). consumers made choices about which consumption bundle to choose from a set of feasible alternatives, and, using some rather mild restrictions on choices

The preference-based approach to consumer behavior is to assume that the consumer has well-defined
preferences over all of the alternative bundles and that the consumer attempts to select the most
preferred bundle from among those bundles that are available. The nice thing about this approach is
that it allows us to build into our model of consumer behavior how the consumer feels about trading
off one commodity against another

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question