The Two Theories of Consumer Choice Used by Economists Are

question 238

Multiple Choice

The two theories of consumer choice used by economists are

• A) indifference curve analysis and utility theory.
• B) utility theory and cross elasticity.
• C) indifference curve analysis and Keynesian analysis.
• D) total utility and marginal utility.

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Definitions:

Total Revenue

The total income generated by a business from the sale of goods and services before any costs or expenses are deducted.

Price Decrease

refers to a reduction in the cost of a good or service, which can lead to an increase in demand due to the law of demand, assuming other factors remain constant.

Unit Elastic

A situation in which the percentage change in quantity demanded or supplied is equal to the percentage change in price.

Total Revenue

The total amount of money generated by the sale of goods or services before any costs are deducted.