Question Completion Status 05 points Sav QUESTION5 Brendon i

Question Completion Status: 0.5 points Sav QUESTION5 Brendon is willing to pay $3,000 for a PlayStation. If the market price of the PlayStation is $2,000, then: a. Brendon will not buy the PlayStation because it is an illegal transaction. O b. Brendon will not buy the PlayStation because the marginal utility derived from it is very low C. Brendon will buy the PlayStation because the price he is willing to pay is more than the market price. d. Brendon will buy the PlayStation because his total utility will increase lick Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Answers Close Window Save ar 8

Solution

C) A persons willingness to pay describes his desire to buy a product and the maximum amount he wants to pay for the product…. Given Brendon willingness to pay for the play station is 3000 , so he can spend atleast 3000 on a play station, now if the price of the product is 2000 he would definitely buy the product, because the price of the product is lower than his willingness to pay, and not only that he also saves rs 1000 from his willingness to pay amount.