Which of the following statement is correct related to the Consumer Equilibrium?
1
When consumers make choices about the quantity of goods and services to consume, it is presumed that their objective is to minimize total utility.
2
In minimizing total utility, the consumer faces a number of constraints.
3
The consumer's effort to maximize total utility, subject to these constraints, is referred to as the service provider problem.
4
The solution to the consumer's problem, which entails decisions about how much the consumer will consume of a number of goods and services, is referred to as consumer equilibrium.