Consumers allocate their budgets among bundles because
A)more is not always better.
B)bundles are the most efficient way to package goods and services.
C)consumers face choices and trade-offs.
D)they want to minimize trips to the store.

Question

Quizplus · Accepted Answer

Consumers allocate their budgets among bundles because they face choices and trade-offs. They have limited budgets and need to decide which bundle of goods or services provides the most value for their money. They may have to give up one bundle in order to afford a more desirable one. Therefore, they need to make strategic choices on how to allocate their budget.

Consumers Allocate Their Budgets Among Bundles Because