In the consumer-choice model, the economist examines how the consumer's purchases change when there is a change in prices or income. Which stage of economic analysis is this procedure a part of?

a. Formulation.
b. Optimization.
c. Equilibrium.
d. Economic dynamics.


b. Optimization.

Economics

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Why do some firms practice price discrimination? Relate your answer to the common practice of public colleges charging lower tuition to in-state students and higher tuition to out-of-state students

What will be an ideal response?

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The United States is a member of the fast-growth club of economic convergence, and India is a member of the slow-growth club of economic convergence.

Select whether the statement is true or false. A. True B. False

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To counteract relative price changes, the government would implement:

A. monetary policy. B. policies that affect the supply and demand for all goods and services. C. polices that affect the supply and demand for a specific good. D. fiscal policy.

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The more significant are economies of scale in an industry, the more product variety will be observed.

Answer the following statement true (T) or false (F)

Economics