The consumer chooses his or her ________ to maximize his or her ________.
A) consumption; income
B) income; consumption
C) wealth; profits
D) consumption; utility
E) interest rate; wealth

Question

Quizplus · Accepted Answer

Consumers choose their consumption to maximize their utility, which represents the satisfaction that individuals derive from consuming goods and services. It is a measure of the desirability of a particular combination of goods and services. Income is important for the consumer to purchase desired goods and services to maximize utility. However, the main objective of the consumer is to optimize the satisfaction derived from the combination of goods and services consumed. Therefore, choice D, consumption and utility, is the most appropriate answer.

The Consumer Chooses His or Her ________ to Maximize His