Suppose Alyssa Is Willing to Drive Across Town to Save

question 89

Multiple Choice

Suppose Alyssa is willing to drive across town to save 50 percent on a soccer ball with a list price of $40. If Alyssa is rational, this implies that she should:

• A)not be willing to drive across town to save 50 percent on a skateboard with a list price of $100.
• B)be willing to drive across town to save 50 percent on a book with a list price of $20.
• C)be willing to drive across town to save 5 percent on a bike with a list price of $400.
• D)not be willing to drive across town to save $20 on a shirt with a list price of $60.

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Definitions:

Earnings Per Share

A profitability metric that measures the amount of net income earned per share of a company's outstanding stock.

Dividends Per Share

The amount of dividend a company pays out for each share of its stock over a specific period, typically a quarter or year.

Net Income

The total profit or loss a company generates from its operations, calculated as revenues minus expenses, taxes, and additional costs.