Microeconomics Behavioral Economics

George Foreman was a professional boxer who made a comeback by endorsing grills. Foreman does not own the company that makes the grills, but he became the face of the brand. At first, ;people were not certain whether he was an expert on grills or fat-free cooking, but Foreman soon became thought of as the expert on this product and this type of cooking. Think of the concept of utility and how Foreman’s role as a celebrity endorser affects the marginal utility of these grill products. Answer the following:

• How do people’s budget, income, and substitution effects fit in?
• How do you think this influences the demand curve for indoor grill products?
• Are these choices made rationally?