Consider the following hypothetical scenarios:
Scenario A: You are about to purchase a pair of 7 For All Mankind jeans for US$175 and a T -shirt for US$45. The sales attendant at the store tells you that the pair of jeans you wish to buy is on sale for US$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 US$175 and a T -shirt for US$45. The sales attendant at the store tells you that the T -shirt you wish to buy is on sale for US$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 US$15 saving amounts to a substantial discount (about 33 percent) .
B) Scenario A because the pair of jeans is a very expensive item and US$15 saving is quite substantial.
C) I think a US$15 saving is worth the 20 -minute trip in both scenarios.
D) I think the US$15 saving is not worth the 20 -minute trip in either scenario.
E) C and D are both correct.
Correct Answer:
Verified
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