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