The rational spending rule is derived from the consumer's efforts to
A)maximize utility.
B)minimize expenditures.
C)obtain the lowest possible price.
D)maximize the number of units purchased.

Question

Quizplus · Accepted Answer

The rational spending rule is based on the consumer's goal of maximizing utility or satisfaction from their purchases while staying within their budget constraint. It involves choosing the combination of goods and services that provides the highest level of utility per dollar spent. Therefore, option A, maximize utility, is the correct answer. The other options are not relevant to the rational spending rule.

The Rational Spending Rule Is Derived from the Consumer's Efforts