Joe walks into Best Buy prepared to spend no more than $500 on a new computer, but the price for the computer he wants turns out to be $600. The salesperson explains that if Joe finances the purchase on a Best Buy credit card, he will receive a $25 gift card free with the $600 computer purchase. Joe opts to open the credit card and puts the full $600 on the account. According to economic theory, Joe's decision is:
A) irrational.
B) rational.
C) budget-conscious.
D) optimal.
Correct Answer:
Verified
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