109k views
0 votes
According to economic-buyer theory, people choose what to buy based on ____ needs.

1 Answer

5 votes

Final answer:

According to economic-buyer theory, people choose what to buy based on utility or satisfaction needs. Greater consumption of a good brings higher total utility, but the additional utility from each unit tends to decline in a pattern of diminishing marginal utility.

Step-by-step explanation:

According to economic-buyer theory, people choose what to buy based on utility or satisfaction needs. Utility refers to the satisfaction or pleasure that individuals derive from consuming a good or service. It is believed that greater consumption of a good generally brings higher total utility, but the additional utility received from each additional unit tends to decline in a pattern of diminishing marginal utility. This means that the first unit of a good provides more satisfaction than subsequent units.

User Ran Wakshlak
by
7.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories