A consumer's spending is restricted because of:
A) marginal utility.
B) total utility.
C) a budget constraint.
D) utility maximization.

Question

Quizplus · Accepted Answer

A budget constraint limits the amount of money a consumer can spend, which impacts their spending decisions. Marginal and total utility factor into the decision-making process, but ultimately the budget constraint is the most significant restriction on spending. Utility maximization refers to choosing the option that provides the most satisfaction, but this is often subject to budget constraints.

A Consumer's Spending Is Restricted Because Of