The economic model of consumer behavior predicts that
A) consumers divide their time between consumption and leisure activities in order to maximize social welfare.
B) consumers will try to accumulate as many goods and services as they can before they die.
C) 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.
D) consumers will try to earn as much income as they can over their lifetimes.
Question 2
Because the monopolistically competitive firm faces a ________ demand curve for its product, it ________ the price of its output.
A) downward-sloping; can influence B) horizontal; can influence
C) horizontal; cannot influence D) downward-sloping; cannot influence
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