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Is Sasha a utility maximizing consumer?
1) True
2) False

1 Answer

1 vote

Final answer:

Yes, Sasha is a utility maximizing consumer.

Step-by-step explanation:

Yes, Sasha is a utility maximizing consumer. According to economists, individuals seek their own satisfaction or utility and often decide to try a little less of one thing and a little more of another. This idea of utility-maximizing consumers facing budget constraints is highly plausible. In the given context, if Sasha trades a dollar more of movies for a dollar more of T-shirts, the marginal utility gained from T-shirts would exactly offset the marginal utility lost from fewer movies, resulting in a net gain of zero.

User Martosfre
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