How does a consumer choose her consumption bundle?

Tastes and preference < budget set

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Tastes and preference > budget set

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Includes both tastes and preference and budget set

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Includes both tastes and preference and budget set
A consumer chooses her bundle based on her taste and preferences. But, there is also a great amount of emphasis placed on the consumer's income and the price of the good. This also derives the utility.

Suggest Corrections

Similar questions

Consumer preferences are monotonic means :

(a) Cconsumer prefers less of both the goods

(b) Consumer prefers more of both the goods

(d) Both B and C

Join BYJU'S Learning Program