Question

Economists usually assume that people act in a rational, self-interested way. In explaining how consumers make choices this means that economists believeA) consumers will always buy goods and services at the lowest possible prices.B) consumers spend their incomes to order to accumulate the most goods and services.C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them.D) consumers will spend their incomes and time on activities that benefit themselves as much as possible, without regard to the welfare of others.

Answer 1

Answer:

C) consumers make choices that will leave them as satisfied as possible given their incomes, tastes, and the prices of goods and services available to them.

Explanation:

Economists adopt the principle of rationality of economic agents. Thus, consumers make their consumption decisions rationally, based on their preferences and the price of goods and services offered. This will be done to the best of our ability in view of each consumer's budget constraint. Thus, with the value of their income, the consumer will buy the basket of products that best benefits and satisfaction.