If you are trying to substantially reduce the amount you spend on food, you should try to:

• A. purchase foods for which your willingness to pay is much higher than the market price
• B. seek out foods for which your willingness to pay is lower than the market price
• C. buy foods for which your willingness to pay is much lower than the market price
• D. focus on buying foods where your willingness to pay is close to the market price

Answer: (C)

Verified step by step guidance

1. Understand the concept of willingness to pay (WTP), which is the maximum amount a consumer is ready to pay for a good or service.
2. Recognize that to reduce spending, you want to buy goods where your WTP is higher than the market price, because this means you value the good more than what you pay, gaining consumer surplus.
3. Evaluate each option: buying foods where WTP is much higher than market price means you get good value and save money relative to your valuation.
4. Buying foods where WTP is lower than market price means you pay more than you value the good, which increases spending and is not efficient.
5. Therefore, to reduce spending effectively, focus on purchasing foods where your willingness to pay exceeds the market price, maximizing your consumer surplus and minimizing unnecessary expenditure.