Consumers usually buy fewer units of a good than the quantity that would maximize total utility from consuming the good because
A) they are not rational.
B) of the law of demand.
C) they have limited incomes.
D) marginal utility becomes zero after just a few units of the good.

Question

Quizplus · Accepted Answer

Consumers have limited incomes, which means that they cannot afford to buy an unlimited quantity of goods. They have to make trade-offs and prioritize which goods they want to buy. Therefore, they will buy fewer units of a good than the quantity that would maximize total utility from consuming the good.

Consumers Usually Buy Fewer Units of a Good Than the Quantity