One Reason That Consumers and Businesses Might Not Act Rationally

question 86

Multiple Choice

One reason that consumers and businesses might not act rationally is

• A)it is difficult to obtain enough information about the elasticities of demand and supply.
• B)they may not realize their actions are inconsistent with their goals.
• C)consumer tastes change constantly.
• D)they do not always value fairness when they make choices.

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Definitions:

Total Revenue

The complete amount of income generated by a company from its business activities, before any expenses are subtracted.

Salary Increase

An adjustment to an employee's base compensation amount to a higher rate, often recognizing performance, inflation adjustments, or changes in job role.

Monthly Salary

Fixed regular payment received by an employee from an employer on a monthly basis for their professional services.

Promotion

The act of raising someone to a higher position or rank or the process of encouraging the sale of a product through advertising or discount offers.