An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same. Based on this information, how would the economist explain the consumers' choices?

Question

Weston Allen

Business

24 January, 03:30

An economist observes two consumers in a supermarket. One of the consumers buys a case of Coca-Cola and the other buys a case of Pepsi-Cola. Both colas sell for the same price and the ages and incomes of the consumers are also the same. Based on this information, how would the economist explain the consumers' choices?

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Amaya Middleton · Answer 1

The Economist is observing the consumer behavior and from the situation he/she just witnessed, he/she can explain that the consumers' choices are due the to taste of both products. One prefers the taste of Coca-Cola and the other one prefers the tase of Pepsi-Cola.

That explanation is based on the fact that both consumers have the same monetary capability to afford any of the products and they are the same age.