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</p> Signup and view all the answers

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