Consumer Theory Quiz PDF

Maximizing producer profits through pricing strategies

Minimizing consumer spending on luxury goods

Maximizing consumer satisfaction given limited resources (correct)

Minimizing government intervention in consumer choices

Consumers will only purchase goods with high advertising exposure

As consumption of a good increases, the additional satisfaction from each unit decreases (correct)

Consumers will always choose the cheapest option available

The more expensive a good is, the more satisfaction it provides

To indicate the total utility derived from consuming a single good

To illustrate the impact of advertising on consumer preferences

To show combinations of goods that provide equal levels of satisfaction (correct)

To demonstrate how prices affect consumer demand