In the Basic Model of Consumer Behavior

question 21

Multiple Choice

In the basic model of consumer behavior,

• A) fairness cannot be explained.
• B) fairness depends more on income than on preferences.
• C) fairness is manifested by the consumers' willingness to pay.
• D) a reduction in demand and market price can be the result of even one consumer who perceives that prices are unfair.

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Definitions:

Absolute Duty

A legal obligation that is unconditional and requires performance under any circumstances, without exceptions.

Novation

The substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated. Typically, there is a substitution of a new party who is responsible for the contract and the removal of an original party’s rights and duties under the contract.

Make Restitution

The act of compensating for loss, damage, or injury caused, often in the context of legal or financial remedies.

Personal Performance

The execution of tasks or duties by an individual based on their own skills and efforts.