The two theories of consumer choice used by economists are
A) indifference curve analysis and utility theory.
B) utility theory and cross elasticity.
C) indifference curve analysis and Keynesian analysis.
D) total utility and marginal utility.

Question

Quizplus · Accepted Answer

Indifference curve analysis and utility theory are the two primary theories used by economists to understand consumer choice. Indifference curve analysis helps in understanding how consumers would make choices between different bundles of goods to maintain the same level of satisfaction, while utility theory focuses on how consumers make choices to maximize their overall satisfaction or utility.

The Two Theories of Consumer Choice Used by Economists Are