Basic consumer theory:

Name: Basic consumer theory:
Brand: Quizplus
Rating: 4.8 (56 reviews)

Question

Quizplus · Accepted Answer

Basic consumer theory assumes that consumers make decisions purely based on utility maximization and does not account for the effects of fairness. However, the theory can be modified to account for fairness preferences as a determinant of consumer behavior. Many economists have expanded the traditional utility maximization model to include fairness concerns or social preferences, such as inequity aversion or altruism. Therefore, the best answer is B.

Basic Consumer Theory