lity: Implies that a consumer is a RATIONAL being and aims at maximizing the total satisfaction given the income and prices of goods and services. ii. Ordinal Utility: Assumes that utility is EXPRESSIBLE only in ordinal terms. This implies that a consumer is only able to express his/her preference for goods.iii. Transitivity and Consistency of Choice: Implies that consumer choices are ASSUMED to be transitive and consistent. The transitivity of choice means that if a consumer prefers A to B and B to C, he/she would prefer A to C. On the other hand, the consistency of choice means that if a consumer prefers A to B in one period, he or she cannot prefer B to A in another period. iv. Non-satiety: Implies that a consumer is assumed to be non-satisfied. In other words, it is assumed that consumer does not reach the level of satisfaction by consuming a good and always prefers a large quantity of goods. v. Diminishing Marginal RATE of Substitution: Acts as an IMPORTANT concept in indifference curve analysis. Marginal rate of substitution implies the rate at which a consumer is willing to substitute one good (X) for another good (Y), so that the total satisfaction remains the same.