To an Economist, Rational Behavior Means

question 15

Multiple Choice

To an economist, rational behavior means:

• A) that an individual is sane
• B) that consumers and producers are purposeful and consistent
• C) that people do the best that they can given the constraints that they face
• D) B and C only

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Definitions:

Macaroni and Cheese

Macaroni and cheese is a popular dish made primarily of cooked macaroni pasta and a cheese sauce, often served as a comfort food.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price, indicating how changes in price affect sales volume.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Price Elasticity

A measure of responsiveness of the quantity demanded or supplied of a good to a change in its price, indicating how changes in price affect demand or supply levels.