Economists infer that a consumer receives more utility from one good than another by
A) giving consumers surveys about the utility they receive from the goods.
B) observing the consumer's behavior.
C) the logic of the models used.
D) means of introspection and speculation.

Question

Quizplus · Accepted Answer

Economists infer that a consumer receives more utility from one good than another by observing the consumer's behavior. This is because consumers' preferences can be revealed through their choices and consumption patterns. For example, if a consumer consistently chooses and purchases one brand of cereal over another, it can be inferred that they derive more utility from that particular brand. This is the basis of revealed preference theory in economics.

Economists Infer That a Consumer Receives More Utility from One