Economists Assume That Consumers Behave in a Manner Consistent with the _______

question 73

Multiple Choice

Economists assume that consumers behave in a manner consistent with the _______ of utility.

• A) maintenance
• B) minimization
• C) maximization
• D) final degree

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Definitions:

Chain Saws

Mechanical tools equipped with a rotating chain with teeth that are used for cutting through wood or other materials.

Perfectly Inelastic

A situation in which demand or supply does not respond at all to changes in price levels, illustrated by a vertical demand or supply curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers.

Income Effect

That part of an increase (decrease) in amount consumed that is the result of the consumer’s real income being expanded (contracted) by a reduction (rise) in the price of a good.