"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes
A)that saving is impossible.
B)that the individual is not satiated in all goods.
C)that no goods are "inferior."
D)that saving is impossible and that the individual is not satiated in all goods.

Question

Quizplus · Accepted Answer

The statement assumes that the individual is not satiated in all goods, as it states that the individual should spend all available income to maximize utility. This implies that the individual still derives satisfaction from consuming more goods.

"If an Individual Is to Maximize the Utility Received from Consumption,he