If the Price of a Good Is Zero, a Rational

question 323

Multiple Choice

If the price of a good is zero, a rational consumer will

• A) buy all of the units available.
• B) not consume the good at all since it must not be valuable if it has a zero price.
• C) stop consuming the good when total utility is maximized.
• D) consume the good up to the point where total utility is just below zero.

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Definitions:

Particular Needs

Specific requirements or necessities that individuals or groups have, which can vary greatly depending on personal circumstances, preferences, or conditions.

Belongingness Needs

are a person's inherent need to feel connected, valued, and a part of a group or social circle, reflecting a fundamental human motivation.

ERG Theory

ERG Theory is a motivation theory developed by Clayton Alderfer that categorizes human needs into three types: Existence, Relatedness, and Growth, suggesting that these needs can influence workplace behavior.

Basic Psychological Needs

Fundamental human motivations that include the need for competence, autonomy, and relatedness, which are essential for psychological development and well-being.