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.

---

Definitions:

Honoring The Dead

Various practices and rituals performed to respect, remember, and pay tribute to deceased individuals, often reflecting cultural or religious beliefs.

Acquiring Supply

The process of obtaining goods or services needed by an organization or individual.

Paleolithic Design

Artistic and functional designs created during the Paleolithic era, characterized by cave paintings, carvings, and early tools.

Artistic Message

The idea, theme, or emotion that the creator of an artwork intends to communicate to the viewer.