Question

Select all that apply.

Select the items that describe a consumer.

a. demands goods and services

b. makes decisions based on preferences

c. invents new products

d. makes goods and services

e. weighs costs and benefits of buying decisions

Answer 1

a. b. e.
demands goods ( any item they buy)
makes decisions based on preferences (preference of brand of item)
weighs costs and benefits (they see which is a better bargain for what they're getting)

Answer 2

The correct answers are the following

• demands goods and services
• makes decisions based on preferences
• weighs costs and benefits of buying decisions

Consumers demand goods and services in the product markets in order to satisfy their needs. Their consumption choices are governed by their preferences and by their budget as, although needs are unlimited, resources are scarce. Therefore, in every operation, a consumer has to assess the benefits that he/she will receive from the purchase in comparison to the expenses beared.