As a consumer you believe yourself to act rationally,optimally and self-interestedly.You like ice cream and value a pint at $7.Usually you buy a pint each week at $4.This week however,the price jumped to $5 a pint.What would you do?
A)buy the ice cream since the price is still below your maximum willingness to pay
B)buy the ice cream since even at the new price it gives you a positive amount of consumer surplus
C)not buy the ice-cream since the price is now higher
D)both A&B

Question

As a consumer you believe yourself to act rationally,optimally and self-interestedly.You like ice cream and value a pint at $7.Usually you buy a pint each week at $4.This week however,the price jumped to $5 a pint.What would you do?
A)​buy the ice cream since the price is still below your maximum willingness to pay
B)buy the ice cream since even at the new price it gives you a positive amount of consumer surplus
C)not buy the ice-cream since the price is now higher
D)​both A&B

Quizplus · Accepted Answer

Both options A and B are correct because the new price of $5 is still below your maximum willingness to pay of $7, indicating that purchasing the ice cream would still result in a positive consumer surplus. This means you would still derive more value from the ice cream than what you pay for it, aligning with rational, optimal, and self-interested consumer behavior.

As a Consumer You Believe Yourself to Act Rationally,optimally and Self-Interestedly.You