example, they might cut back on snacks at restaurants like chicken wings and nachos. It would be unwise to

assume that the liquor industry is the only one affected by the tax on alcoholic beverages. Read the next Clear

It Up to learn about how who controls the household income influences buying decisions.

The Unifying Power of the Utility-Maximizing Budget Set Framework

An interaction between prices, budget constraints, and personal preferences determine household choices.

The flexible and powerful terminology of utility-maximizing gives economists a vocabulary for bringing these

elements together.

Not even economists believe that people walk around mumbling about their marginal utilities before they walk

into a shopping mall, accept a job, or make a deposit in a savings account. However, economists do believe that

individuals seek their own satisfaction or utility and that people often decide to try a little less of one thing and
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