Joe Is in the Market for a Mattress

question 28

Multiple Choice

Joe is in the market for a mattress.He is deciding between two different mattresses: one that is fairly expensive but offers a free 20-year manufacturer's warranty and another that is lower-priced but only offers a on-year manufacturer's warranty.Joe's decision to purchase the more expensive mattress would indicate that:

• A)Joe has a high level of income.
• B)Joe is not price sensitive.
• C)Joe interpreted the manufacturer's warranty as a quality indicator.
• D)Joe is not a utility maximizer.

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Definitions:

Adaptation

The process by which a species becomes fitted to its environment; it is the result of natural selection acting upon heritable variation.

Drought Tolerant

Refers to plants that are able to survive and thrive in conditions with very little water.

Low-growing Grasses

Grass species that have a short stature, typically found in lawns or as ground cover.

Rain Shadows

Rain shadows are dry areas on the leeward side of mountain ranges, where the landscape blocks precipitation from reaching the interior.