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Question 18 (Multiple Choice Worth 2 points)

If a consumer believes that businesses are charging a price well below equilibrium for a good he wants, what would be a rational response? Assume the good cannot be resold.

A. Not purchase any units to wait until the surplus leads to a lower price
B. Purchase more units than he wants to take advantage of the low price
C. Purchase his desired units quickly before there is a shortage
D. Purchase the closest substitute for that good
E. Purchase a complement to that good



Answer :

GinnyAnswer

Final answer:

In Economics, a rational response for a consumer facing a price lower than equilibrium is to buy more units for increased total utility.


Explanation:

The rational response of a consumer in Economics:

Consumer Surplus: When a consumer believes a product is priced lower than equilibrium, a rational response is to purchase more units than desired to take advantage of the low price. This strategy aims to maximize total utility while considering marginal utility.


Learn more about Consumer Surplus here:

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