Consumer Preferences and Utility Maximization

• The consumer's income and expenditure on goods and services
• The consumer's preferences for goods and services
• The total amount of goods and services available in the market
• What the consumer can afford to buy given a limited income and prices of goods and services (correct)

• The consumer's preferences for pizza and books
• The total cost of all the goods and services
• The limit of consumption possibilities (correct)
• The total income of the consumer

• Only points inside the budget line are affordable
• Points on the budget line and inside the budget line are affordable (correct)
• Only points beyond the budget line are affordable
• Points beyond the budget line are affordable

<p>Shifts the budget line rightward without changing its slope (A)</p> Signup and view all the answers

<p>Changes the intercept on its axis and changes the slope of the budget line (C)</p> Signup and view all the answers