Assume that the price of a gallon of milk is $2.00 at a supermarket and $2.30 at a convenience store. Based on cost/benefit analysis, you might rationally choose to purchase the milk at the convenience store, particularly if you didn’t need many other grocery items. The money cost for the milk is higher at the small store, but the benefit is time saved: easy parking, less walking, and a faster checkout. If you save time, then you have the opportunity to do something more constructive than shopping. Some might even think it silly to go to a supermarket for just one or two items.

For part "c", assume first that the shirts or dresses are the same brand and are of equal quality. Would some consumers still shop at the upscale store because they believe the benefits of presumably better service are greater than the higher money price? Would other customers shop at the fancy store because they wouldn’t want to be caught dead shopping for clothing at Wal-Mart? Let’s face it, snob appeal is a factor for some consumers. Keeping up with, or ahead of, our peers and even those we don’t know is a factor in our consumption choices, isn’t it?

Continuing with part "c", if the clothing is of different quality, then the higher money cost paid at the upscale store presumably is offset by the benefits associated with these items: the clothes look better, fit better, feel more comfortable, etc.