The combination of two goods a consumer chooses depends on his:
A)demand and his supply
B)preferences and his demand
C)budget constraint and his preferences
D)budget constraint and his supply

Question

Quizplus · Accepted Answer

The combination of goods a consumer chooses depends on his preferences, but it is also limited by his budget constraint. The consumer can only purchase as much as he can afford within his budget, which ultimately affects his choices. Therefore, the correct option is C, which states that the combination of goods a consumer chooses depends on his budget constraint and his preferences.

The Combination of Two Goods a Consumer Chooses Depends on His