Asked by Julian Munoz on Apr 26, 2024
Verified
A consumer's spending is restricted because of:
A) marginal utility.
B) total utility.
C) his or her budget constraint.
D) utility maximization.
Budget Constraint
The limitation that the cost of a consumer’s consumption bundle cannot exceed the consumer’s income.
- Apply the concept of budget constraints to consumer decision-making.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
C
Explanation :
A consumer's spending is limited by his or her budget constraint. Marginal utility and total utility are concepts related to the satisfaction gained from consuming goods, while utility maximization is a goal for the consumer but not a restriction on spending.
Learning Objectives
- Apply the concept of budget constraints to consumer decision-making.