Suppose Michael is willing to drive across town to save 40 percent on a sweatshirt with a list price of $80. If Michael is rational, this implies that he should
A)not be willing to drive across town to save 40 percent on a microwave with a list price of $200.
B)be willing to drive across town to save 40 percent on a book with a list price of $30.
C)be willing to drive across town to save 10 percent on a guitar with a list price of $320.
D)not be willing to drive across town to save $35 on a shirt with a list price of $70.

Question

Quizplus · Accepted Answer

If Michael is willing to drive across town to save 40 percent on a sweatshirt that costs $80, this implies that he should be willing to drive across town whenever his savings from doing so is at least $32. Thus, he should be willing to drive across town to save 10 percent on a guitar that costs $320.

Suppose Michael Is Willing to Drive Across Town to Save