Economists usually assume that consumers
A) are motivated to maximize their utility.
B) spend all of their current income.
C) are poor judges of what is best for them.
D) are motivated to maximize their profit.
E) usually save as much as possible of their income.

Question

Quizplus · Accepted Answer

Maximizing utility is a fundamental assumption of consumer behavior in economics, meaning that consumers aim to make choices that will bring them the greatest satisfaction or happiness given their preferences and budget constraints. This assumption helps economists understand how consumers make choices and allocate their resources.

Economists Usually Assume That Consumers