Question

1. A consumer's spending is restricted
because of
a) utility maximization
b) budget constraint
c) demand curve
d) marginal utility​

Answer 1

The correct answer is option (b) budget constraint.

• In economics, the budget limit represents all combinations of goods and services that a consumer may purchase based on current prices within his or her gross income.
• Consumer theory uses budget constraints and popular maps as tools to evaluate consumer options parameters. Both concepts have the right image representation in two beautiful cases. The consumer can only afford to buy income in a positive way, which is why his budget is restricted. [1] The budget limit is { P_ {x} x + P_ {y} y = m} P_ {x} x + P_ {y} y = m where P_x is the positive X value, and P_y is the price of good Y, and m = income.

Answer 2

Concept:

A consumer spending means the expenditure on goods to consume the goods and services by consumer.

Given:

A consumer's spending is restricted because of utility maximization, budget constraint, demand curve, marginal utility​.

To Find:

A consumer's spending is restricted because of

Solution:

A consumer spending is restricted because of budget constraint. The reason behind this is that we have limited income to spend on goods and services into the economy.