The ________ Component of the Consumer Decision-Making Model Is Concerned

question 102

Multiple Choice

The ________ component of the consumer decision-making model is concerned with how consumers make decisions.

• A) process
• B) output
• C) decision
• D) input
• E) emotional

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Definitions:

Budget Line

A chart that displays every possible mix of two commodities that could be bought, given a particular financial plan, with unchanging prices.

Price Ratio

The ratio expressing the relative prices of two goods or services, indicating how much of one is needed to trade for one unit of the other.

Marginal Rate

Refers to the rate at which one quantity changes with respect to a change in another quantity, commonly used in the context of taxes and interest rates.

Substitution Effect

The change in consumption of goods in response to a change in their relative prices, holding the consumer's level of utility constant.