In the goal of consumer optimization, it is assumed that
A)savings are positive.
B)the consumer is rational.
C)the consumer consumes more than his or her disposable income.
D)consumption equals disposable income.
E)more is preferred to less.

Question

Quizplus · Accepted Answer

Consumer optimization assumes that the consumer is rational, meaning they will make choices that maximize their utility or satisfaction. This assumption allows for analyzing the trade-offs between different goods and services in making consumption decisions.

In the Goal of Consumer Optimization, It Is Assumed That