The economic model of consumer behavior predicts that
A)consumers will try to earn as much income as they can over their lifetimes.
B)consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy.
C)consumers will try to accumulate as many goods and services as they can before they die.
D)consumers divide their time between consumption and leisure activities in order to maximize social welfare.

Question

Quizplus · Accepted Answer

The economic model of consumer behavior assumes that consumers seek to maximize their utility or satisfaction by choosing a combination of goods and services that make them as well off as possible, given their budget constraint. This means that consumers will allocate their limited resources to the goods and services that provide them with the highest marginal utility per dollar spent. In other words, they will choose the bundle of goods and services that maximizes their total utility subject to their budget constraint.

The Economic Model of Consumer Behavior Predicts That