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2 January, 09:30

Suppose a consumer is trying to decide how much to spend on foodfood and how much to spend on all other (non-foodfood ) consumption. The economic model of consumer behavior predicts that the consumer will

A. choose the combination of foodfood and non-foodfood consumption that makes her as well off as possible from among the combinations of foodfood and non-foodfood items she can afford.

B. consume any combination of foodfood and non-foodfood consumption from among the combinations of foodfood and non-foodfood items she can afford.

C. consume an infinite amount of foodfood and non-foodfood consumption.

D. consume as much foodfood and as much non-foodfood consumption as she wants.

E. consume as much foodfood as she can afford without any non-foodfood consumption.

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Answers (1)
  1. 2 January, 10:27
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    The answer is: A. choose the combination of food and non-food consumption that makes her as well off as possible from among the combinations of food and non-food items she can afford.

    Explanation:

    The economic model of consumer behavior states that an individual will consume the products or services that maximize his (or her) benefits and overall well-being while minimizing costs.

    So this consumer should choose the combination of products (between food and non-food products) that maximize his well-being while having the lowest possible cost.
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Home » Business » Suppose a consumer is trying to decide how much to spend on foodfood and how much to spend on all other (non-foodfood ) consumption. The economic model of consumer behavior predicts that the consumer will A.
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