Kay has a budget of $20 for purchasing lunch and for purchasing bus tickets. Kay will most likely choose some combination of lunches and bus tickets. If Kay is like most people, she will choose options that:
A) are outside the budget constraint line.
B) maximize her utility.
C) are only on the budget constraint line.
D) are only inside the budget constraint line.

Question

Quizplus · Accepted Answer

Kay, like most people, will aim to maximize her utility within her budget, meaning she will choose the combination of lunches and bus tickets that gives her the most satisfaction or utility for her $20.

Kay Has a Budget of $20 for Purchasing Lunch and for Purchasing