Which of the following scenarios best depicts a rational buyer according to microeconomic theory?

• A. A consumer buys the most expensive product simply because it is popular, regardless of its utility.
• B. A consumer compares the prices and qualities of two brands before purchasing the one that offers the highest utility for the lowest price.
• C. A consumer purchases a product impulsively without considering its price or usefulness.
• D. A consumer chooses a product at random without any information or reasoning.

Answer: (B)

Verified step by step guidance

1. Understand the concept of a rational buyer in microeconomic theory: a rational buyer makes decisions to maximize their utility given their budget constraints.
2. Identify that a rational buyer compares the benefits (utility) and costs (price) of different options before making a purchase decision.
3. Recognize that simply buying the most expensive or popular product without considering utility does not align with rational behavior.
4. Note that impulsive purchases or random choices without information do not reflect rational decision-making because they ignore utility maximization and cost considerations.
5. Conclude that the scenario where the consumer compares prices and qualities to choose the product offering the highest utility for the lowest price best depicts a rational buyer.