Most People Would Prefer to Drive a Luxury Car That

question 272

Multiple Choice

Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because

• A)car buyers are irrational.
• B)the total utility of less expensive cars is greater than that of luxury cars.
• C)the marginal utility per dollar spent on the less expensive car is higher than that spent on luxury cars.
• D)luxury cars cost a lot more than non-luxury cars.

---

Definitions:

Cooling Off Rule

A federal regulation allowing consumers to cancel certain types of sales or contracts within three days for a full refund.

Rescind Contract

To rescind a contract means to legally cancel or terminate the agreement, returning the parties to the positions they held before entering into the contract.

Do Not Call Registry

A national list managed by the U.S. government where individuals can register their telephone numbers to restrict unsolicited telemarketing calls.

No Set Expiration Date

A term indicating that a contract or agreement does not have a predetermined end date.