The combination of goods and services that maximizes utility for a given income is called
A) diminishing marginal utility.
B) the real-income effect.
C) marginal utility.
D) the substitution effect.
E) the consumer optimum.

Question

Quizplus · Accepted Answer

The combination of goods and services that maximizes utility for a given income is called the consumer optimum. This means that the consumer has achieved the highest level of satisfaction possible with their budget constraints. Therefore, the best choice is option E.

The Combination of Goods and Services That Maximizes Utility for a Given