Whatever the time period involved, a consumer's spending will be _______ by his or her _______ .
A) unlimited; marginal utility
B) limited; marginal utility
C) limited; budget
D) unlimited; budget

Question

Quizplus · Accepted Answer

A consumer's spending is limited by his or her budget, as there is only a finite amount of money available for purchases. Marginal utility refers to the additional satisfaction a consumer derives from consuming an additional unit of a good or service and is not directly related to the consumer's spending limits. Therefore, A and B are incorrect. Similarly, while a consumer's marginal utility may influence their spending decisions, it does not exert limitless control over them, thereby making D incorrect.

Whatever the Time Period Involved, a Consumer's Spending Will Be