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Essay question: Consumer choice theory assumes that consumers are rational but we observe a person behaving...

Essay question: Consumer choice theory assumes that consumers are rational but we observe a person behaving differently in apparently similar situations. Is it realistic to think that we account for rational behaviour in every situation?

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According to consumer choice theory, it is assumed that consumers are rational. However, we assume a person behaving differently in apparently similar situations. It is not realistic to think that we account for rational behaviour in every situation. Human behaviour is dynamic and unpredictable. Both producers and consumers, might act irrationally depending upon their preferences and state of mind. As the preferences of consumers are not same, therefore it is not possible to generalise everyone and say that the consumers are rational.

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