Which of the following best explains why people may be impatient to make a purchase?

• A. They expect the price of the good to decrease in the future.
• B. They believe their willingness to pay will decrease over time.
• C. They derive higher utility from immediate consumption compared to delayed consumption.
• D. They want to maximize producer surplus.

Answer: (C)

Verified step by step guidance

1. Understand the concept of time preference in microeconomics, which explains why individuals may prefer consumption today rather than in the future.
2. Recognize that impatience in purchasing behavior is linked to the idea that people derive more satisfaction (utility) from consuming a good immediately rather than waiting.
3. Analyze each option: expecting a price decrease would encourage waiting, not impatience; a decrease in willingness to pay over time could explain impatience but is less direct; maximizing producer surplus relates to sellers, not buyers.
4. Identify that the best explanation is that consumers derive higher utility from immediate consumption compared to delayed consumption, reflecting positive time preference or impatience.
5. Conclude that impatience is best explained by the higher utility gained from consuming now rather than later, which motivates immediate purchase decisions.