If a restaurant runs a special and sells a lobster dinner for $4.50, Amy buys one lobster dinner a week. If lobster dinners are not on special and the price is $16.00, Amy buys zero lobster dinners per week. Which of the following is true?

Question

Quizplus · Accepted Answer

Amy's willingness to buy the lobster dinner at $4.50 but not at $16.00 suggests that her valuation (marginal utility) of the dinner is at least $4.50 (since she buys it at that price) but less than $16.00 (since she does not buy it at that price).

If a Restaurant Runs a Special and Sells a Lobster