Statement I: People who bought bottled water for $5 during the Great Blackout of 2003 were ripped off.
Statement II: According to utility theory,no buyer was ever ripped off.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Utility theory posits that if a buyer voluntarily purchases an item, they do so because the utility (or satisfaction) they expect to gain from the item is greater than or equal to the price they pay. Therefore, from the perspective of utility theory, no buyer is considered to be ripped off as long as the transaction is voluntary, even if they pay a high price under extraordinary circumstances like the Great Blackout of 2003.

Statement I: People Who Bought Bottled Water for $5 During