Satisficing is the tendency of:

• A. ignoring incentives when making decisions
• B. choosing an option that meets minimum requirements rather than the optimal one
• C. always maximizing utility regardless of constraints
• D. preferring higher prices over lower prices

Answer: (B)

Verified step by step guidance

1. Understand the concept of satisficing in microeconomics: it refers to the behavior where decision-makers choose an option that meets a certain minimum threshold or requirement instead of searching for the absolute best or optimal choice.
2. Recognize that satisficing contrasts with utility maximization, where individuals aim to maximize their satisfaction or utility given constraints.
3. Analyze each option in the problem to see which aligns with the definition of satisficing:
4. - Ignoring incentives is not related to satisficing; incentives usually influence decisions.
5. - Choosing an option that meets minimum requirements rather than the optimal one directly matches the concept of satisficing.