Consumers will make a decision to purchase a new product only if it

A) has a lower marginal utility per dollar spent than another product.
B) is recommended as a valuable product by other consumers.
C) increases the total utility they obtain from their limited income.
D) can be sold at a lower price than that for a competing product.

Question

Jevitha Ragupathy · Accepted Answer

Final Answer : C, Explanation :  Consumers aim to maximize their total utility given their budget constraints. A new product that increases their total utility from their limited income is more likely to be purchased, as it offers them more satisfaction or value for their money.

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