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.
Answer:
What is driving Anne's and Adam's decisions?
Opportunity cost
Explanation:
The opportunity cost is the amount of benefits expressed in monetary terms of picking one alternative over the other. It is an economical aspect as opposed to an accounting aspect. It is mostly beneficial to business people or investors who have a variety of business opportunities that requires an investment. Since they are not always considered in financial reports, they are often an unnoticed and may not be considered in most cases. This can cause the occurrence of missed opportunities that might have been more beneficial than the option chosen. The opportunity cost can be calculated using the formula below;
O.C=F.O-C.O
where;
O.C=opportunity cost
F.O=return on best foregone option
C.O=return on chosen option
In our case, Anne had to consider either continuing to sell the same number of dresses or increasing her production to capitalize on the profit margins. She chose to increase her production. Adam also had two alternatives; to utilize the opportunity of buying furniture at a lower cost down the street within two days before the offer ends or buying furniture expensively after the end of the offer. Adam chose to utilize the offer and bought the furniture a half-price sale.
Answer:
The correct answer is "consumer price index"
Explanation:
The average of the prices paid by customers for goods and services, belonging at the fixed market basket is called Consumer Price Index (CPI). The consumer price index is an excellent measure or indicator of inflation. It's calculated and measured by the Bureau of Labor Statistics.
Your answer is A.) present details that explain your request