You Are Watching TV Late One Night and See an Ad

question 10

Short Answer

You are watching TV late one night and see an ad from ValuCo for the Dice-o-matic food slicer. You learn that the Dice-o-matic sells for $29.95. But wait, there's more! ValuCo is also including in this deal a set of Ginsu steak knives worth $10.95 and another free gift worth $7.95. Assuming that there is a competitive market for ValuCo items, at what price must ValuCo be selling this three-item Dice-o-matic deal to ensure the absence of an arbitrage opportunity and uphold the Law of One Price?

---

Definitions:

Depression

A common but serious mood disorder that affects how a person feels, thinks, and handles daily activities, characterized by persistent sadness and a lack of interest.

Sleep Patterns

The cyclical sequences of sleep stages and wakefulness experienced through a typical night.

Depressed People

Depressed people are individuals experiencing depression, a mental health disorder characterized by persistent feelings of sadness, hopelessness, and loss of interest or pleasure in most activities.

Language Comprehension

The ability to understand spoken, written, or signed language through the processes of decoding syntactic structure, semantics, and discourse context.