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

question 27

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 saving 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:

Behaviourist

A psychologist or researcher who studies behavioral patterns, often focusing on measurable and observable actions rather than mental or emotional states.

Nativist

A perspective in the field of linguistics and cognitive science which suggests that the ability to acquire language is innate to humans and genetically predetermined.

Cognitive

Relating to cognition, which involves processes such as thinking, knowing, remembering, judging, and problem-solving.

Biological Mechanism

The means or process through which functions are carried out within a living organism, often at the cellular or molecular level.