When choosing among products,consumers look at
A)The marginal utility per dollar and their budget constraint.
B)The total utility that will be gained at the end of all consumption.
C)Only their budget.
D)The marginal utility of the good.

Question

Quizplus · Accepted Answer

Consumers look at both the marginal utility per dollar and their budget constraint. Marginal utility per dollar helps them determine the additional satisfaction gained for each extra dollar spent on a product. Their budget constraint helps them see how much they can afford to spend and make trade-offs among different products. By considering both factors, consumers can make the best choice that maximizes their satisfaction within their budget constraints.

When Choosing Among Products,consumers Look at