Consumer behavior

Question 1

What does the concept of utility refer to?

The price of a good The satisfaction or pleasure derived from consuming a good The quantity of goods available in the market The cost associated with production

Question 2

In utility maximization, consumers aim to achieve the highest level of utility given their

Preferences Budget constraints Prices of goods All of the above

Question 3

If a consumer is at the point where the budget line is tangent to an indifference curve, what can be said about their utility?

It is maximized It is minimized It is decreasing It is constant

Question 4

Which of the following statements about indifference curves is true?

They cannot intersect. They always slope upwards. They represent different levels of income. They are linear.