A rational, utility-maximising consumer is considering the purchase of a refurbished laptop. Her final choice is between two laptops which are identical in all technical and cosmetic specifications except for the differences shown in the table below.
| Price | Warranty period against hardware faults | |
|---|---|---|
| Laptop 1 | £450 | 1 month |
| Laptop 2 | £600 | 24 months |
Based on this information, which one of the following is the most likely explanation for the consumer's purchase of Laptop 2? She
has a budget constraint of exactly £450.
has a positive income elasticity of demand for computing equipment.
seeks to reduce the risks arising from asymmetric information.
has a price elastic demand curve for refurbished products.
45 exam-style questions on AQA A Level Economics 1.2 Individual economic decision making (A-level only), covering 1.2.1 Consumer behaviour, 1.2.2 Imperfect information, 1.2.3 Aspects of behavioural economic theory, and 1.2.4 Behavioural economics and economic policy. Each one has a worked solution and a mark scheme showing where the marks go.