Question

Which of the following descriptions of consumer behavior violates the assumption of rational preferences? Explain briefly. a. Joseph is confused: He doesn't know whether he'd prefer to take a job now or go to college full-time. b. Brenda likes mustard on her pasta, in spite of the fact that pasta is not meant to be eaten with mustard. c. Brewster says, "I'd rather see an action movie than a romantic comedy, and I'd rather see a romantic comedy than a foreign film. But given the choice, I think I'd rather see a foreign film than an action movie."

Short answer

Only statement c with Brewster's movie preferences violates the assumption of rational preferences, due to the lack of transitivity in his preferences.

Step-by-step solution

Analyze statement a

Joseph is essentially confused in making a decision between taking a job now or pursuing a full-time college education. This is not necessarily a violation of the rational preference assumption because it is natural for people to have indecision over important choices. It does not mean his preferences are not ordered or logical.

Analyze statement b

Brenda prefers mustard on her pasta, contrary to the societal norm. But an individual's preferences are subjective, and her culinary choice does not violate the assumption of rational behavior. Brenda has a clear preference for the choice that satisfies her taste, which observes rational behavior's characteristics.

Analyze statement c

Brewster's preferences for movies are not in a logical order. His preference for romantic comedies over action movies and foreign films contradicts his preference for a foreign film over an action movie. This violates the assumption of transitivity in rational behavior, which states that if a person prefers A over B and B over C, they should prefer A over C.