Question

You open up a shoe store and charge $50 for a new pair of boots. The shoe store across the street charges $100 for the same boots. Most consumers will most likely buy from _____.

your shoe store

the shoe store across the street

Answer 1

Your shoe store. You sell the exact same pair of boots but you sell them for a cheaper price. Most likely a customer would eat up a deal like that.

Answer 2

Your shoe store

Step-by-step explanation:

Most consumers would most likely buy from your shoe store. In this example, both your shoe store and the store across the street sell the same pair of shoes. However, your store sells them for cheaper. If we assume that consumers are rational actors, and there is no difference between the two products, then it is more likely for them to buy the pair of boots from your store.