We assume that the representative consumer's preferences exhibit the properties that
A)current and future consumption are both normal goods and that the consumer likes diversity in his or her consumption bundle.
B)each consumer has one strictly favourite period of time for consumption and that current and future consumption are both normal goods.
C)current and future consumption are both normal goods and that more is always preferred to less.
D)they are convex and that more is always preferred to less.
E)more is always preferred to less and that each consumer has one strictly favourite period of time for consumption.

Question

Quizplus · Accepted Answer

The representative consumer's preferences typically assume that both current and future consumption are normal goods and that the consumer likes diversity, which implies convex preferences.

We Assume That the Representative Consumer's Preferences Exhibit the Properties