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Question
the rational spending rule is derived from the consumers desire to
multiple choice
minimize expenditures.
obtain the lowest possible price.
maximize utility.
maximize the number of goods purchased.
The rational - spending rule is based on the consumer's goal of getting the most satisfaction (utility) from their spending. Consumers allocate their income in a way that maximizes utility, which is the basis for the rational - spending rule. Minimizing expenditures, getting the lowest price, or maximizing the number of goods purchased are not the fundamental reasons for the rule; utility maximization is.
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C. maximize utility