Consumers do NOT buy as many units of each good as they want because
A) of the law of diminishing marginal utility.
B) they have limited incomes.
C) they do not know what they want in all situations.
D) eventually marginal utility equals zero.

Question

Quizplus · Accepted Answer

Consumers have limited incomes, which means that they cannot afford to buy as much of each good as they want. This forces them to make choices and allocate their limited resources in the best way possible to maximize their satisfaction. The law of diminishing marginal utility and zero marginal utility are also factors that affect consumer behavior, but they do not provide a complete explanation for why consumers do not buy as many units of each good as they want.

Consumers Do NOT Buy as Many Units of Each Good