15. The assumption that preferences are complete requires the consumer: (a) To rank any two bundles (b) To say bundle C is preferred to bundle A if bundle B is preferred to bundle A and bundle C is preferred to bundle B (c) To rank a bundle with more units of all goods higher than a bundle with fewer units of all goods (d) To have a diminishing marginal rate of substitution

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Normal and Inferior Goods

Understanding a normal good and an inferior good is important because it tells us what will happen to demand different products during booms and recessions.