Your Roommate Tells You She's Going to Join the Gym

question 48

Multiple Choice

Your roommate tells you she's going to join the gym next week.A week and a half goes by and you ask her how the gym is going,and she tells you she's going to wait until the following week.Your roommate's preferences are:

• A) better today than tomorrow.
• B) time inconsistent.
• C) mistakes.
• D) considered bad choices.

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Definitions:

Supply

The total amount of a good or service available for purchase at any given price level.

Total Surplus

The sum of consumer surplus and producer surplus in a market; it represents the total net benefit to society from the production and consumption of a good.

Equilibrium

Describes a state in a market where the quantity of a product supplied is equal to the quantity of the product demanded, leading to a stable price.

Gains from Trade

The benefits that parties obtain by engaging in voluntary trade, allowing them to acquire goods and services they desire at less cost compared to self-production.