Martin Is in the Market for a New Television Set

Multiple Choice

Martin is in the market for a new television set.He is deciding between two sets: one is rather expensive but offers a guarantee; the other has a lower price but offers no guarantee.Martin's decision to buy the more expensive set would indicate that:

A) Martin does not know a good deal when he sees it.
B) Martin interpreted the guarantee as a signal of the quality.
C) Martin should have shopped around a bit more for a better deal.
D) Martin is not maximizing his utility.
E) Martin has a high income.