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

Quizplus · Accepted Answer

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.

Consumers Will Make a Decision to Purchase a New Product