Consider the Following Hypothetical Scenarios: Scenario A: You Are About

question 13

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 B because a $15 saving amounts to a substantial discount (about 33 per cent)
• B)in either scenario if I think a $15 savings is worth the 20-minute trip
• C)in none of these scenarios if I think the $15 saving is not worth the 20-minute trip
• D)B and C are correct answers.

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Definitions:

Machiavellianism

A personality trait characterized by manipulativeness, callousness, cynicism, and a focus on self-interest and deception.

Complex

Consisting of many different and connected parts, noting a system or problem that is intricate and complicated.

Crisis

A situation of danger or instability that requires an urgent response.

Collective Effort

The combined work and cooperation of a group aimed at achieving a common goal.