Question 7
Theory of Consumer BehaviourA rational consumer tends to do all the following except
- A.buying more at a high price than at a low price
- B.buying more at a low price than at a high price
- C.buying at utility maximization
- D.reacting to price changes
- E.complying with the law of demand.
Show the answer and explanation
Answer: A (buying more at a high price than at a low price)
Explanation
A rational consumer obeys the law of demand, buying more when price is low, not more when it is high.