The first step in the consumer decision-making process is to:

• A. compare the market price to the equilibrium price
• B. determine their willingness to pay for a good or service
• C. analyze the producer surplus in the market
• D. calculate the consumer surplus they will receive

Answer: (B)

Verified step by step guidance

1. Understand that the consumer decision-making process involves several stages, starting from recognizing a need or desire for a good or service.
2. The first step is to determine their willingness to pay, which means assessing how much value or satisfaction they expect to gain from consuming the good or service.
3. This willingness to pay reflects the maximum price a consumer is ready to pay based on their preferences and budget constraints.
4. Comparing market price to equilibrium price, analyzing producer surplus, or calculating consumer surplus are subsequent steps or related concepts but not the initial step in the consumer's decision-making process.
5. Therefore, focus on the consumer's internal evaluation of value (willingness to pay) as the foundational step before considering market prices or surplus calculations.