In 3-5 sentences, describe how a consumer can use a cost-benefit analysis to decide between buying a concert ticket or buying a new pair of jeans. Mention the steps involved in analyzing each choice and how this process results in a decision.

Question

Terrence Ross

Business

23 January, 15:10

In 3-5 sentences, describe how a consumer can use a cost-benefit analysis to decide between buying a concert ticket or buying a new pair of jeans. Mention the steps involved in analyzing each choice and how this process results in a decision.

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Delilah Larsen · Answer 1

First, a consumer will analyze the cost of the products.

Next, the costumer will analyze the benefit that that products could bring for them. Let's say that both products cost $ 50. The costumer may think:

- The concert will give me about 3 hours of happiness

- while the jeans could give me about 3 years and it motivate me to maintain my weight.

After weighing the benefit, the jeans is more favorable to him because it bring more benefit to him than the tickets so he chose to use his money to buy the jeans instead