Assume you are in a store looking at a shirt you want.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?
A) The shirt's marginal utility divided by price was too low compared to other goods.
B) The shirt has zero marginal utility for you.
C) The opportunity cost of the shirt was too low.
D) The shirt's marginal utility divided by price was too high compared to other goods.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

The decision can be viewed in economic terms as the shirt's marginal utility (the additional satisfaction or benefit received from acquiring or consuming one more unit of a good) divided by its price being too low compared to other goods. This means that the perceived value or satisfaction you would get from the shirt does not justify its cost, especially when considering alternative ways to spend your money.

Assume You Are in a Store Looking at a Shirt