What Is a Good Argument for Using the Model of the Consumer

question 19

Multiple Choice

What is a good argument for using the model of the consumer despite the fact that it requires making many simplifying assumptions?

• A) It is complex to solve.
• B) The assumptions are sometimes realistic.
• C) It explains observed patterns of behavior.
• D) It is used in many scholarly fields.

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Definitions:

Sensitivity

The quality of being easily influenced, changed, or damaged, especially by external factors or conditions.

Industry

The sector of an economy involved in the production of goods and services.

Inferiority

A feeling of lower standing in relation to others, which can affect an individual's self-esteem and social interactions.

Competence

Refers to having the necessary ability, knowledge, or skill to perform a task successfully.