Rational utility maximizers tend to:
A)buy the same bundle of goods regardless of changing prices.
B)choose the bundle of goods that maximizes their utility regardless of their income.
C)change their consumption choices when either prices or income changes.
D)change their consumption choices only when both prices and income changes simultaneously.

Question

Quizplus · Accepted Answer

Rational utility maximizers adjust their consumption choices when either prices or income changes. This is because they seek to maximize their utility, and changes in prices or income affect their ability to do so. Therefore, they will adjust their consumption choices to maximize their utility given the new circumstances.

Rational Utility Maximizers Tend To