Consider the Following Hypothetical Scenarios

question 65

Multiple Choice

Consider the following hypothetical scenarios:
Scenario A: You are about to purchase a pair of 7 for All Mankind jeans for $175 and a t-shirt for $45.The sales attendant at the store tells you that the pair of jeans you wish to buy is on sale for $160 at another store, located about a 20-minute drive away.
Scenario B: You are about to purchase a pair of 7 for All Mankind jeans for $175 and a t-shirt for $45.The sales attendant at the store tells you that the t-shirt you wish to buy is on sale for $30 at another store, located about a 20-minute drive away.
Based on standard economic theory, under which scenario would you make the 20-minute trip to the other store?

• A)Scenario A because the pair of jeans is a very expensive item and $15 saving is quite substantial
• B)Scenario B because a $15 saving amounts to a substantial discount (about 33 percent)
• C)in either scenario if I think a $15 savings is worth the 20-minute trip
• D)in none of these scenarios if I think the $15 saving is not worth the 20-minute trip
• E)C and D are correct answers.

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Definitions:

Somatic

Referring to the body cells that are not involved in reproduction, excluding sperm and egg cells.

Sensory Neurons

Nerve cells that transmit sensory information (sight, sound, touch, taste, and smell) from the body to the central nervous system.

Interneurons

A type of neuron that connects sensory and motor neurons within the central nervous system.

Motor Neurons

Nerve cells responsible for conveying impulses from the spinal cord or brain to muscles or glands, causing them to act.