Question

When asked if he wants another beer, Kevin says "no thanks". Is this a violation of...

When asked if he wants another beer, Kevin says "no thanks". Is this a violation of the non-satiation assumption?

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Answer #1

Answer-Yes, this is violation of non-satiation assumption. Non-satiation is one of the assumption of indifference curve analysis that states that a consumer is always more satisfied by the additional unit of a good. He/she is never satisfied fully or never reaches the peak/bliss/ highest point of the indifference curve. It assumes more is better and greater quantity of a good provides greater satisfaction to individuals. In this example, as Kevin refuses to take another drink, it seems he is satisfied or satiated, which is violation of the non-satiation assumption.

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