Dave Is Undecided About Whether to Eat at a Restaurant

question 171

Multiple Choice

Dave is undecided about whether to eat at a restaurant or to order pizza at home. He then obtains a coupon for 20 percent off at the restaurant and decides to go there to eat. This is an example of

• A) someone using criteria other than price to make a consumption decision.
• B) a lower price leading a consumer to substitute more of the less expensive good for the relatively more expensive good.
• C) a lower price leading a consumer to buy more of a good because of the income effect.
• D) a consumer making a decision irrationally.

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Traditional View

A perspective or approach that is based on customs, beliefs, or practices that have been handed down from past generations.

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