Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A)their budget constraint.
B)their wealth.
C)relative prices.
D)their marginal rate of substitution.

Question

Quizplus · Accepted Answer

Consumers are assumed to choose the bundle of goods that maximizes their well-being subject to their budget constraint. This means that they can only choose goods and services that they can afford, given their income and the prices of the goods they want to purchase.

Economists Assume Consumers Select a Bundle of Goods That Maximizes