What does the economic model of consumer behaviour predict?
A)That consumers will try to earn as much income as they can over their lifetimes.
B)That consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy.
C)That consumers will try to accumulate as many goods and services as they can before they die.
D)That consumers will divide their time between consumption and leisure activities in order to maximise social welfare.

Question

Quizplus · Accepted Answer

The economic model of consumer behaviour predicts that consumers will choose to buy the combination of goods and services that make them as well off as possible from those combinations that their budgets allow them to buy. This is based on the assumption that consumers are rational and seek to maximise their utility or satisfaction.

What Does the Economic Model of Consumer Behaviour Predict