The intuition behind the budget constraint is that
A) more options are preferred to less.
B) money is the root of all happiness.
C) information is power.
D) scarcity is avoidable with prosperity.

Question

Quizplus · Accepted Answer

The budget constraint reflects the trade-offs a consumer faces among different goods given their limited income, implying that with finite resources, individuals must make choices, thus more options within those constraints are generally preferred.

The Intuition Behind the Budget Constraint Is That