Economics?

Question

What determines whether you would buy cheapest or buy what you want the most? Give reasons with examples for your viewpoint.

Answer 1

Preferences of individuals, let's take an example

I like to eat potatoes, I prefer potatoes on rice to accompany my meat and vegetable.

1) Between potatoes, I do not have a preference between the different types so I just choose the cheapest.

2) Between potatoes, I prefer the bintje type (Belgian sort) and I am ready to pay 50% more because FOR ME their taste is over 50% better than others and FOR ME all potatoes standard prices are already cheap.