Author Question: As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice ... (Read 44 times)

Hungry! · **on:** Jul 1, 2018

As 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?
a. buy the ice cream since the price is still below your maximum willingness to pay
b. buy the ice cream since even at the new price it gives you a positive amount of consumer surplus
c. not buy the ice-cream since the price is now higher
d. both A&B

Question 2

What would the Nash equilibrium be in this game?
a. Neither of the players would stop
b. Both of the players would stop
c. Player A stops
d. Player B stops