Economist cannot predict everyone s exact taste but we may make general observations about the characteristics shared by the preferences of virtually everyone. Preferences are complete. We may rank order our preferences. I prefer my Dell computer to a Gateway and a Gateway to a Micron. Or I am indifferent between a gateway and a HP. 2.
Preferences are transitive.
I cannot prefer a Micron to a Dell. In other words people act rationally with consistent preferences. More is Better. This is referred to as non-satiation or more is preferred to less . These assumptions hold for most individuals.