Consumer purchasing behavior is driven by consumer preferences. The state legislators would like to better understand consumer preferences and the requirements needed to analyze consumer preferences. What does restricting consumer preferences to be

transitive mean, and what are the implications of transitivity for consumer indifference

curves?

a.

What does the Diminishing Marginal Rate of Substitution mean, and what are

the implications of a Diminishing Marginal Rate of Substitution for consumer

indifference curves?

b.

What is the relationship between the Diminishing Marginal Rate of Substitution

and the Law of Diminishing Marginal Utility?