Asked by Kaianah Sweeting on Jul 27, 2024
Verified
Indifference analysis assumes that utility is numerically measurable.
Indifference Analysis
An economic tool used to analyze and understand consumer preferences, showing combinations of goods between which a consumer is indifferent.
Numerically Measurable
Quantifiable or able to be expressed in numerical terms and measured.
- Pinpoint and expound upon the critical nature of indifference curves and consumer predilections.
Verified Answer
LS
Latifat SulaimonJul 29, 2024
Final Answer :
False
Explanation :
Indifference analysis does not assume that utility is numerically measurable; it assumes that consumers can rank their preferences in order of utility received.
Learning Objectives
- Pinpoint and expound upon the critical nature of indifference curves and consumer predilections.
Related questions
It Is Possible for a Consumer's Indifference Curves to Intersect
Indifference Curves Are Convex to the Origin Due to Diminishing ...
In Moving Northeasterly from the Origin, We Encounter Indifference Curves ...
Graphically, the Consumer Maximizes Total Utility Where the Budget Line ...
As a Consumer Moves Down a Given Indifference Curve, His ...