In choosing between an old reliable product and a new attractive product, the consumer will
A)always buy the product with the lower price.
B)always buy the product with the higher MU.
C)buy the one with the higher MU-to-P ratio.
D)buy the one with the lower MU-to-P ratio.

Question

Quizplus · Accepted Answer

The consumer will buy the one with the higher Marginal Utility to Price (MU-to-P) ratio, as this indicates they are getting more utility or satisfaction per unit of currency spent, making it a more efficient choice.

In Choosing Between an Old Reliable Product and a New