A Consumer Is Trying to Decide Whether to Purchase Car

question 35

Multiple Choice

A consumer is trying to decide whether to purchase car A or car B. Car A costs $10,000 and has an mpg rating of 30, and insurance is $450 per year. Car B costs $11,800 and has an mpg rating of 50, and insurance is $500 per year. Assume that the consumer drives 15,000 miles per year and that the price of gas remains constant at $1.25 per gallon. Based only on these facts, determine how long it will take for the total cost of car B to become less than that of car A.

• A)10 years
• B)31 years
• C)41 years
• D)18 years
• E)9 years

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Definitions:

Adequate Time

The amount of time deemed sufficient to accomplish a task or meet a requirement, often based on subjective evaluation.

Responsibilities

Duties or obligations expected to be fulfilled by individuals or organizations.

Achievement Behavior

Actions aimed at accomplishing specific goals or meeting standards of excellence.

Hierarchy Of Needs

In Maslow’s theory, the order in which human needs demand attention.