Toby is hunting for a new apartment. He is specifically looking for one that is located in the heart of the city and should be available for $600 per month. However, Toby is also willing to pay up to $850 per month for a place situated slightly away from the city centre. According to him, the second option "will also do." This is an example of ________.
A) experience-based decision-making
B) rational decision-making
C) bounded rationality
D) intuitive decision-making
E) non linear thinking

Question

Quizplus · Accepted Answer

This is an example of bounded rationality, as Toby has set specific criteria for his decision (location and price range), but is willing to make a compromise and select an option that may not completely meet all of his requirements.

Toby Is Hunting for a New Apartment