The restriction that a consumer's total expenditure on goods and services purchased cannot exceed the income available is referred to as
A) maximizing behavior.
B) economizing behavior.
C) the price constraint.
D) the budget constraint.

Question

Quizplus · Accepted Answer

The budget constraint sets the limit on the total amount that a consumer can spend on goods and services, based on their available income. This means that the consumer must make choices and trade-offs between different goods and services to stay within their budget constraint. Therefore, option D is the correct answer.

The Restriction That a Consumer's Total Expenditure on Goods and Services