An optimising consumer will select a consumption bundle in which utility is maximised:
A)and prices are minimised
B)and income is maximised
C)and indifference curves are linear
D)subject to constraints imposed by her budget

Question

Quizplus · Accepted Answer

An optimizing consumer will select a consumption bundle that maximizes their utility, subject to the constraints imposed by their budget. They will try to purchase goods and services that provide the greatest satisfaction at the lowest possible cost, given their budget. Therefore, option D is the correct answer.

An Optimising Consumer Will Select a Consumption Bundle in Which