A Consumer Who Buys a Product Without Having Compared Prices

question 9

Multiple Choice

A consumer who buys a product without having compared prices at nearby stores

• A)violates the assumption of rationality underlying consumer theory.
• B)is irrational because she could save money by shopping around.
• C)is rational because it would be costly to find out how much the product would cost elsewhere.
• D)is rationally ignorant if she expects the costs of doing so to be greater than possible savings.

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Definitions:

Transmitting Neurons

Neurons that send signals from the brain to various parts of the body, facilitating communication within the nervous system.

Images

In a psychological context, images can refer to mental representations of sensory experiences, often visual, that are not currently being perceived but can be recalled or imagined.

Fraction Of A Second

A very short period of time, indicating something that happens extremely quickly.

Life Stories

Narratives that individuals construct about their lives, often reflecting their personal identity, experiences, and values.