A consumer has a reservation price of $90 for a blender.If the local store is offering the blender for $100 with a $10 rebate and he does not make the purchase,one can surmise that
A) his reservation price was too high.
B) his reservation price was too low.
C) in this case,the hurdle failed to work.
D) the hurdle was too low.
E) the hurdle was too high.

Question

Quizplus · Accepted Answer

The rebate effectively reduces the price to $90, matching the consumer's reservation price, yet he still did not purchase, indicating the hurdle (rebate) did not incentivize the purchase.

A Consumer Has a Reservation Price of $90 for a Blender.If