Question

Assume you are in a store looking at a shirt you want. You expect to buy the shirt until you look at the price, then you decide the shirt is not a good buy. How can your decision be viewed in economic terms

Answer 1

a. The shirt's marginal utility divided by price was too low compared to other goods.

Step-by-step explanation:

here are the options to this question :

a. The shirt's marginal utility divided by price was too low compared to other goods.

b. The shirt has zero marginal utility for you.

The shirt's marginal utility divided by price was too high compared to other goods.

c. The opportunity cost of the shirt was too low.

d. None of the above answers is correct.

Marginal utility is the change in utility as a result of consuming one extra unit of a good or service.

the goal of any rational consumer is to maximise utility.

If he shirt's marginal utility divided by price was too low compared to other goods, it means that the price is too high when compared to the marginal utility of the shirt.