Steve and Don Are Neighbours Who Work at the Same

question 120

Multiple Choice

Steve and Don are neighbours who work at the same firm and hold the same title.Steve finds that when Don's consumption rises,he feels worse off.Don feels the same way towards Steve's consumption.
-Refer to the information above.Suppose that Don buys a new Lexus and shortly thereafter Steve buys a new Audi.Steve and Don seem to be

• A) just making consumption decisions.
• B) unmoved by the other's actions.
• C) involved in a positional arms race.
• D) imposing external benefits on each other.
• E) demanders of high-quality cars.

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