Which one of the following is not an assumption of the theory of demand based on analysis of indifference curve?
A. Given scale of preferences as between different combinations of two goods.
B. Diminishing marginal rate of substitution.
C. Constant marginal utility of money.
D. Consumers would always prefer more of a particular piece of goods to less of it, other things remaining the same.
Answer:C
Which one of the following is not an assumption of the theory of demand based on analysis of indifference curve?
A. Given scale of preferences as between different combinations of two goods. B. Diminishing marginal rate of substitution. C. Constant marginal utility of money. D. Consumers would always prefer more of a particular piece of goods to less of it, other things remaining the same.