Question

Joe wants to buy a baseball bat for no more than $30; the sporting goods store in town sells bats for $50. what can we assume about joe's decision to buy a bat

Answer 1

We can assume that Joe did not purchase the bat. Joe values the price of a bat at $30 even though the sporting goods store in town sells it for $50. Due to Joe having a perceived value of the bat set at $30, he will likely wait to purchase a bat until he finds a bat that is priced at the price he is willing to pay.

Answer 2

We can assume that Joe did not purchase a bat because he had determined an upper limit of what he was willing to pay, and the sporting goods store had no bats that met his criteria. Alternatively, it's possible that Joe only had $30, in which case he simply did not have the funds to purchase a bat.