Question

hi can someone answer this please clearly with step by step because was answered before but wrong

e) Briefly, in a paragraph, explain why neoclassical consumer theory might not provide a full account of consumer decision-making under certainty. [20% mark]

Answer 1

In Neo classical consumer theory under certainty the factors that influence choice are the different amounts of goods and services that are consumed and the preference of the individual over the alternative combination of the goods .Only these factors determine utility.If there are two bundles of goods and services ie A and B to be consumed by an individual , the individual may prefer A to B or B to A or the individual may be indifferent between the two.The assumption is that these preferences are complete , reflexive, continuous as well as transitive.