Assume you are in a store looking at a shirt you want to buy. 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?

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This decision can be viewed in economic terms as a comparison of the shirt's marginal utility (the satisfaction or benefit gained from owning the shirt) and its price. If the marginal utility divided by price is too low compared to other goods, meaning you don't feel like the satisfaction gained from owning the shirt is worth the price, then you would decide not to buy it. This is a common example of how consumers make decisions based on the relative value of goods and services in the marketplace.

Assume You Are in a Store Looking at a Shirt