Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint.
B) their income.
C) relative prices.
D) their marginal rate of substitution.

Question

Quizplus · Accepted Answer

The assumption that consumers select a bundle of goods that maximizes their well-being subject to their budget constraint is a fundamental principle in microeconomics. It means that consumers will choose the combination of goods and services that provides them with the highest level of satisfaction, given their limited resources. Essentially, this means that consumers will try to get the most value for their money.

Economists Assume Consumers Select a Bundle of Goods That Maximizes