Question

ECONOMICS - What is the 'consumer's problem'?

Answer 1

It is A. the difficulty in maximizing total utility with budget constraints

Answer 2

Answer:

The best answer is "A"

the difficulty in maximizing total utility with budget constraints

Explanation:

The major problem of consumers is that they want to attain a level of satisfaction from a particular goods or services when they knw that it is difficult to reach.

If the demand is more than the supply,the price will be higher therefore there will be less consumption.

The price a consumer is willing to pay for a good depends on the benefit derived by consuming the product and it decreases for each additional unit of consumption.

At the point where total utility is achieved in the goods and services bought, satisfaction received from consuming a given total quantity of that goods is reached.