JoJo Is Shopping for a New Computer

question 62

Multiple Choice

JoJo is shopping for a new computer.A mail-order computer can be delivered to JoJo's home for $1,200.JoJo could pick up the same computer at the warehouse for $1,000.How should JoJo decide?

• A)JoJo should definitely drive to the warehouse because the monetary cost is $200 lower.
• B)JoJo should drive to the warehouse if the value of his travel time plus wear and tear on his car is less than $200.
• C)JoJo should definitely have the computer delivered,because the $200 saving is less than 20% of the purchase price.
• D)JoJo should definitely drive to the warehouse because the $200 saving is more than 10% of the purchase price.

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Definitions:

Supply Curve

A graph that shows the relationship between the price of a good and the quantity supplied.

Price Ceiling

A government-imposed limit on the maximum price that can be charged for a product or service.

Government-Imposed

pertains to regulations, restrictions, or conditions set by public authorities that affect individuals, businesses, or activities within a jurisdiction.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price in a given period.