Robert decides not to attend a showing of the newest Star Wars movie when the price of a ticket is $10.From this, we can conclude that seeing the movie is
A)worth less than 1,000 utils to Robert.
B)worth $8 to Robert.
C)was worth less than $10 worth of other goods for Robert.
D)something that Robert would never do.

Question

Quizplus · Accepted Answer

Robert values $10 worth of other goods more than seeing the Star Wars movie. If he valued the movie at $10 or more, he would have gone to see it. Therefore, it is worth less than $10 worth of other goods to him. Option A is not necessarily true as we don't know how Robert values other things. Option B assumes that Robert has a strict willingness to pay of $8 for the movie which may not be true. Option D is not supported by the information given.

Robert Decides Not to Attend a Showing of the Newest