In consumer choice, one maximizes ______ subject to a budget constraint.
A) quantity
B) price savings
C) utility
D) utility, price savings, and quantity

Question

Quizplus · Accepted Answer

Consumer choice is about maximizing utility, which is the satisfaction or happiness derived from consuming goods and services. However, consumers are constrained by their budget, which limits the amount they can spend. Therefore, consumers must make choices that maximize their utility within their budget constraint. Price savings and quantity are also important considerations, but they are factors that contribute to maximizing utility.

In Consumer Choice, One Maximizes ______ Subject to a Budget