Tammy and Tad's Father Has Given Each of Them a Debit

question 3

Essay

Tammy and Tad's father has given each of them a debit card and allows each of them to use the card to spend $500 each month. Tammy and Tad use their $500 to buy only CDs and gasoline. In February, the price of a CD was $10 and the price of gasoline was $1 per gallon. At these prices, Tammy purchased 45 CDs and 50 gallons of gas. Ted consumed 20 CDs and 300 gallons of gas. For the month of March, Tammy and Tad's father lost the records indicating who had which debit card. From the bank statement in March, their father learned that the price of a CD was $12 and a gallon of gas cost $0.80. The first debit card was used to purchase 235 gallons of gas and 26 CDs. The second debit card was used to purchase 265 gallons of gas and 24 CDs. Using revealed preference theory, identify which card Tammy must possess.

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Definitions:

Emotional Intelligence

The skill to recognize, employ, and regulate personal emotions beneficially to alleviate stress, communicate efficiently, connect with others emotionally, tackle obstacles, and mitigate conflicts.

Fugue State

A rare dissociative disorder characterized by reversible amnesia for personal identity, including the memories, personality, and other identifying characteristics of individuality.

Anxiety

A state of distress or anxiety, especially in anticipation of something that is about to happen or because the result is not clear.

Negative Symptom

A term often used in psychology and psychiatry to describe a lack or diminution of normal functions, such as reduced emotion or motivation.