Question

Peter has $50 to buy towels. The store has two brands: one set costing $30 and another set, of nicer quality, costing $45. He decides to buy the more expensive towels. The reason Peter might make this decision is because he _____.

Answer 1

It is stated that Peter has $50 on hand so it means that Peter already decided that he will spend all or less than $50 for a set of towel. So when Peter saw the two brands of the towel and after inspecting the price and quality, he settled for the higher valued towel. There are many reasons you can see why Peter choose the one which has the higher price at $45 that the cheaper one which is $30. One reason is the quality, but I can see that the main reason is that Peter already decided to spend $50 for a towel before going to the store so whatever towel he sees, he will most likely to choose which is nearer the price he set for buying a towel. 

Answer 2

He already plans to spend $50 to buy towels and since both sets of towels cost less than $50 he decided to go with the better quality yet more expensive set of towels.