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Scenario: Susan Discounts Delayed Utility with a Weight Of 12 \frac{1}{2}

Question 86

Multiple Choice

Scenario: Susan discounts delayed utility with a weight of 12 \frac{1}{2} , and Jim discounts delayed utility with a weight of 1/4. Both individuals win gift vouchers, which can be used after a year. Both Susan and Jim estimate the utility of the gift vouchers at 90 utils.
-Refer to the scenario above.If both individuals are offered movie tickets worth 40 utils today instead of the gift voucher,then which of the following statements is true?


A) Both Susan and Jim will prefer to retain the gift voucher.
B) Both Susan and Jim will prefer the movie tickets over the gift voucher.
C) Susan will prefer the gift voucher, while Jim will prefer the movie ticket.
D) Jim will prefer the gift voucher, while Susan will prefer the movie ticket.

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