Question

How do consumers derive theit optimal consumption basket for a given utility functions, prices of the goods/services and income of the consumer?

Answer 1

Answer:

Explanation:

Consumers analyze the optimal way in which to leverage their purchasing ... can predict consumer behavior and consumers can maximize their overall utility ... of overall value in a given basket of goods relative to a specific consumer. ..... Construct the demand curve using changes in consumption due to price changes ...

Answer 2

Answer:

INFLATION

Explanation:

The average change over time in the prices paid by urban consumers for a market basket goods and services of consumer is measured by the consumer price index. A general increase in the cost of goods and services which also measures the change in prices of a basket of goods and services in a given year is inflation

HOPE IT HELPED