As long as scarcity exists, _____.
A)product prices play no role in consumers' utility maximization
B)income plays no role in consumers' utility maximization
C)income and product prices should both be considered for consumers' utility maximization
D)consumers maximize utility by consuming all products until the marginal utilities of additional amounts is zero
E)consumers would increase consumption of all products as long as total utility is positive

Question

As long as scarcity exists, _____.​
A)product prices play no role in consumers' utility maximization
B)income plays no role in consumers' utility maximization
C)income and product prices should both be considered for consumers' utility maximization
D)consumers maximize utility by consuming all products until the marginal utilities of additional amounts is zero
E)consumers would increase consumption of all products as long as total utility is positive

Quizplus · Accepted Answer

Scarcity means that resources are limited and cannot satisfy all human wants and needs. As a result, product prices and income are both important factors to consider in consumers' utility maximization. Consumers need to make choices and allocate their limited income to purchase the products that provide the highest utility given their prices.

As Long as Scarcity Exists, _____.​

As Long as Scarcity Exists, _____.