A Consumer's Optimum Is Found When

question 44

Multiple Choice

A consumer's optimum is found when

• A) prices of goods go down.
• B) the consumer is achieving the maximum level of utility given market prices and their limited income.
• C) the marginal utility of the last dollar spent equals 0 for every good.
• D) the consumer saves part of their income.

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Definitions:

Foot In The Door

A persuasion technique where a small initial request is made to increase the likelihood of compliance with a larger request later.

Lowballing

A sales technique in which a customer is initially offered a lower price than the actual price intended to be charged, after they have agreed to purchase.

Idiosyncrasy Credit

A theoretical concept that describes the tolerance a group has for the unconventional behavior of its members, based on the individual's status and previous contributions to group cohesion or performance.

Charismatic

Possessing a compelling charm or appeal that inspires devotion or admiration from others.