Which of the following best explains why most people don't consume units of goods to the point that their marginal utility falls to zero?
A)If marginal utility is falling, then total utility is falling.
B)Consumers face budget constraints that limit how much they can purchase.
C)Governments tend to limit how much of a good a person is allowed to consume.
D)The price of a good tends to rise as an individual attempts to purchase more.

Question

Quizplus · Accepted Answer

Consumers are limited by their budget constraints, which restrict the amount of goods they can purchase before reaching a point where the marginal utility of a good falls to zero. This means they often stop consuming more of a good because they either run out of money or choose to spend their remaining money on other goods that provide higher utility.

Which of the Following Best Explains Why Most People Don't