An exogenous variable in a consumer's choice problem would typically be:
A)satisfaction level.
B)consumption level.
C)price level.
D)quantity consumed.

Question

Quizplus · Accepted Answer

An exogenous variable in a consumer's choice problem is a variable that is outside of the control of the consumer, such as the price level. The consumer can adjust their consumption level and quantity consumed to some extent, but they cannot control the price. Therefore, C is the best choice for an exogenous variable. A, B, and D are endogenous variables, meaning they are within the control of the consumer. An exogenous variable is a variable that is outside the control of the individual making the decision. In a consumer choice problem, price level is typically an exogenous variable as consumers do not have control over the prices of goods and services. Therefore, the best choice is C.

An Exogenous Variable in a Consumer's Choice Problem Would Typically