Question

You walk into a small grocery store with a list of 4 items to purchase. Having found every item on your list, you decide to purchase only 3 items: milk, cereal, and a pound of bananas. We can conclude that your willingness to pay for the other item was less than its price. a) true b) false

Answer 1

The statement "We can conclude that your willingness to pay for the other item was less than its price" is true.
When you walk into the small grocery store with a list of 4 items to purchase, you find all the items but decide to only buy 3 of them: milk, cereal, and a pound of bananas. This means that you made a decision not to purchase the fourth item on your list. The reason for this decision could be that you found the price of the fourth item to be higher than what you were willing to pay for it.
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In economics, willingness to pay refers to the maximum amount of money or value that a person is willing to give up in order to obtain a certain good or service. If you choose not to purchase an item, it generally means that your willingness to pay for that item is lower than its price.

refers to the maximum amount of money or value that a person is willing to give up in order to obtain a certain good or service. If you choose not to purchase an item, it generally means that your willingness to pay for that item is lower than its price.
In this case, since you decided not to buy the fourth item on your list, we can conclude that your willingness to pay for that item was less than its price. This makes the statement true.