Ask Question
18 February, 18:00

Hector would like to buy a new pair of soccer cleats. Hector prefers Adidas to Puma brand soccer cleats. But Hector chooses to buy the Puma brand cleats instead. Which of the following reasons for Hector's choice is consistent with rational consumer choice?

a. The price of Puma brand soccer cleats was less than the price of Adidas brand soccer cleats.

b. The price of Adidas brand soccer cleats was less than the price of Puma brand soccer cleats.

c. Hector could not afford to buy both pairs of soccer cleats.

d. Hector did not know his preferences between the two brands of soccer cleats.

+4
Answers (1)
  1. 18 February, 20:14
    0
    Answer: Option (A) is correct.

    Explanation:

    It was given that consumer prefers Adidas to puma brand soccer cleats but he buys puma brand soccer cleats. This is only because of the price theory and rational consumer choice. We know that a rational consumer will choose a product with a lower price. Both puma and Adidas brand soccer cleats are substitutes, thus, if the price of puma cleats is lower than the Adidas cleats then he should prefer puma brand soccer cleats.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Hector would like to buy a new pair of soccer cleats. Hector prefers Adidas to Puma brand soccer cleats. But Hector chooses to buy the Puma ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers