Related to the Economics in Practice on page 125: Harry's Foods claims that you will pay less for groceries by shopping at their stores. As evidence, Harry's Foods points out that the total price of the bundle of goods that a particular shopper purchased at Harry's Foods was lower than the total price of the same bundle of goods purchased at other stores. Which of the following points out a flaw in the grocery store's argument?
A) The shopper in question may not have purchased the same bundle of goods had he shopped at one of the other stores first.
B) It ignores the possibility that Harry's Foods used to charge higher prices than their competitors.
C) It fails to demonstrate that Harry's Foods offers the highest quality groceries.
D) Prices on the day the bundle was purchased may not be representative of prices on a typical day.

Question

Quizplus · Accepted Answer

DThe argument assumes that the shopper would have purchased the same bundle at other stores, which may not be true (A). Additionally, prices on the day of purchase may not reflect typical pricing, making the comparison potentially misleading (D).

Related to the Economics in Practice on Page 125: Harry's