Question 1 (a) two examples of badly-behaved preferences about Economic Theory and Principles
The first badly behaved preference is a situation where an individual prefers inferior goods to superior products when indeed they are in the financial position where they can comfortably afford such goods. Some of the inferior products include some of the staple foods that are in existence. With an increase in income levels, individuals tend to shift to superior products. It would appear uncommon to stick to a product that naturally belongs to a lower class. In real life situations, when incomes increase, people tend to change their shopping malls and even the foods that they eat. Furthermore, they ...