As long as scarcity exists,
A)product prices play no role in utility maximization
B)income plays no role in utility maximization
C)income and product prices must both be considered in utility maximization
D)consumers maximize utility by consuming all products until their marginal utility is zero
E)product prices will be zero

Question

Quizplus · Accepted Answer

Since scarcity exists, both income and product prices must be considered in utility maximization. Consumers must make choices regarding how to allocate their limited income and choose which products to purchase based on their relative prices and the satisfaction they provide (measured by marginal utility).

As Long as Scarcity Exists