Corey has a blue sweater and a denim jacket.On some days he chooses to wear the sweater but on others he chooses to wear the jacket.Economists would most likely conclude that:
A) Corey's preferences have changed.
B) Corey's preferences have not changed, but other factors may have changed such as the temperature outside.
C) Corey is irrational if he wears different clothing on different days.
D) Corey is indifferent between wearing a jacket or a sweater.

Question

Quizplus · Accepted Answer

Economists would recognize that Corey's clothing choice is likely influenced by the temperature outside and other external factors, rather than a change in his preferences. This is consistent with the idea of utility maximization - on some days, wearing a sweater may provide him with more utility, while on other days the jacket may provide him with more.

Corey Has a Blue Sweater and a Denim Jacket