The theory of consumer choice provides a(n)
A) literal account of how people make decisions.
B) unrealistic picture of how people make decisions.
C) model that is consistent with how people make decisions.
D) in-depth model that is based more in psychology than in economics.

Question

Quizplus · Accepted Answer

The theory of consumer choice is a model that is consistent with how people make decisions. It takes into account factors such as budget constraints, preferences, and the law of diminishing marginal utility, which are commonly observed in real-world decision-making. While it may not perfectly capture every individual's decision-making process, it provides a useful framework for understanding consumer behavior.

The Theory of Consumer Choice Provides A(n)