"If an individual is to maximize the utility received from consumption,he or she should spend all available income...." This statement assumes.
A) that saving is impossible.
B) that the individual is not satiated in all goods.
C) that no goods are "inferior."
D)Both a and b.

Question

Quizplus · Accepted Answer

The statement assumes that saving is impossible (A) because it suggests spending all available income, and it also assumes that the individual is not satiated in all goods (B) to ensure that additional consumption increases utility.

"If an Individual Is to Maximize the Utility Received from Consumption,he