A household's consumption choices cannot exceed limits created by
A) only the household's income.
B) only the prices of the goods and services that it buys.
C) both the household's income and the prices of the goods and services that it buys.
D) neither the household's income nor the prices of the goods and services that it buys.

Question

Quizplus · Accepted Answer

A household's consumption choices are limited by both their income and the prices of goods and services since they cannot consume beyond what they can afford with the given income, and the availability of goods and services in the market that fit within their budget. Hence, option C is the correct answer.

A Household's Consumption Choices Cannot Exceed Limits Created by