When you buy in bulk, the price per individual item:

• A. usually decreases compared to buying items individually
• B. is determined solely by your willingness to pay
• C. remains the same as buying items individually
• D. usually increases compared to buying items individually

Answer: (A)

Verified step by step guidance

1. Understand the concept of bulk buying: When purchasing items in larger quantities, sellers often offer a lower price per unit to encourage buying more at once.
2. Recall the principle of economies of scale or quantity discounts, which explains why the price per individual item usually decreases when bought in bulk.
3. Analyze the options: 'price per individual item usually decreases', 'is determined solely by willingness to pay', 'remains the same', and 'usually increases'.
4. Eliminate options that contradict common market behavior: prices rarely increase per unit when buying in bulk, and price is not solely determined by willingness to pay but also by seller pricing strategies.
5. Conclude that the correct understanding is that the price per individual item usually decreases compared to buying items individually due to bulk discounts.