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Consumer Optimum Consumption: Budget Constraint and Indifference Curves
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Consumer Optimum Consumption: Budget Constraint and Indifference Curves
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18. Consumer Choice and Behavioral Economics / Consumer Optimum Consumption: Budget Constraint and Indifference Curves / Problem 3
Problem 3
What is a limitation of a consumer's budget in achieving higher levels of utility?
A
The budget constraint limits the consumer to the highest attainable indifference curve.
B
The budget constraint always allows the consumer to reach the highest utility curve.
C
The budget constraint allows the consumer to achieve any level of utility.
D
The budget constraint is irrelevant to the consumer's utility.
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