Question

In 3–5 sentences, describe how a consumer can use a cost-benefit analysis to decide between buying a concert ticket or buying a new pair of jeans. Mention the steps involved in analyzing each choice and how this process results in a decision.

Answer 1

The consumer first must pay for the product, such as concert tickets versus the cost of a new pair of jeans. Next, the consumer will analyze the benefits of the product that will best meet their needs. They are likely to believe that a 3 hour consultation will satisfy them more than a new pair of jeans that will last them for 3 years or more. Based on the benefits, jeans are a better purchase for the consumer than the concert ticket because it's an item that will more benefit them than the concert ticket.

Step-by-step explanation:

Answer 2

First, a consumer will analyze the cost of the products.

Next, the costumer will analyze the benefit that that products could bring for them. Let's say that both products cost $ 50. The costumer may think :
- The concert will give me about 3 hours of happiness
- while the jeans could give me about 3 years and it motivate me to maintain my weight.

After weighing the benefit, the jeans is more favorable to him because it bring more benefit to him than the tickets so he chose to use his money to buy the jeans instead