1. Rationality assumption - consumer is assumed rational and therefore his or her objective is to maximise utility subject to the constraints imposed by his or her income and commodity prices.
2. Consistency of choice - it is assumed that the consumer is consistent in choice ,that is,if at one period he prefers bundle A to B, in any other period he should prefer the same if all the bundles are available.
3. Assumption of ordinal utility - the consumer is able to rank his preference according to the satisfaction of each basket of commodities.
4. Completeness of choice - a consumer must be able to make a choice with regard to their preference.
5. Transitivity of choice - if bundle A is preferred to B which is preferred to C , then bundle A must be preferred to C.
Jonmhumble answered the question on October 22, 2017 at 19:42
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