________ Theories Describe What People Ought to Do, Whereas ________

question 40

Multiple Choice

________ theories describe what people ought to do, whereas ________ theories describe what people actually do.

• A)Normative; descriptive
• B)Descriptive; normative
• C)Decision-making; goal-oriented
• D)Goal-oriented; decision-making

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods and services.

Substitution Effect

Variations in consumer purchasing patterns as a result of shifting prices among products, which leads to the exchange of one good for another.

Apple Consumption

Refers to the quantity of apples eaten or utilized over a specified period of time.

Substitution Effect

refers to the change in consumption patterns due to a change in relative prices, leading consumers to substitute more expensive goods with cheaper alternatives.