The set of goods and services that maximizes the level of satisfaction for each consumer subject to limited income is
A) the consumer optimum.
B) diminishing marginal utility.
C) increasing marginal utility.
D) substitution effect.

Question

Quizplus · Accepted Answer

The consumer optimum is the set of goods and services that maximizes the level of satisfaction for each consumer subject to limited income. It takes into account both the consumer's preferences and budget constraints. The other options (B, C, and D) refer to concepts related to consumer behavior but do not directly answer the question about the set of goods and services that maximizes satisfaction.

The Set of Goods and Services That Maximizes the Level