Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint.
B) their income.
C) relative prices.
D) their marginal rate of substitution.
Answer: their budget constraint.
Economists assume consumers select a bundle of goods that maximizes their well-being subject to
A) their budget constraint.
B) their income.
C) relative prices.
D) their marginal rate of substitution.
Answer: their budget constraint.