Question

Which of the following best explains why most people don’t consume units of goods to the point that their marginal utility falls to zero?

Multiple Choice

• If marginal utility is falling, then total utility is falling.

• Consumers face budget constraints that limit how much they can purchase.

• Governments tend to limit how much of a good a person is allowed to consume.

• The price of a good tends to rise as an individual attempts to purchase more.

Answer 1

Consumers face budget constraints that limit how much they can purchase. - is correct