question 5 (1 point)\nlisten\nas a consumer you believe yourself to act rationally, optimally and self…

question 5 (1 point)\nlisten\nas a consumer you believe yourself to act rationally, optimally and self - interestedly. you like ice cream and value a pint at $7. usually you buy a pint each week at $4. this week however, the price jumped to $5 a pint. what would you do?\nbuy the ice cream since the price is still below your maximum willingness to pay\nbuy the ice cream since even at the new price it gives you a positive amount of consumer surplus\nnot buy the ice - cream since the price is now higher\nboth a&b

question 5 (1 point)\nlisten\nas a consumer you believe yourself to act rationally, optimally and self - interestedly. you like ice cream and value a pint at $7. usually you buy a pint each week at $4. this week however, the price jumped to $5 a pint. what would you do?\nbuy the ice cream since the price is still below your maximum willingness to pay\nbuy the ice cream since even at the new price it gives you a positive amount of consumer surplus\nnot buy the ice - cream since the price is now higher\nboth a&b

Answer

Brief Explanations:

Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price paid. Here, the maximum willingness - to - pay is $7 and the new price is $5. Since $5 < $7, there is a positive consumer surplus ($7 - $5 = $2). A rational, self - interested consumer would buy the ice cream as the price is below the maximum willingness to pay and there is positive consumer surplus.

Answer:

D. both A&B