Shel and Fran are neighbors.They work at the same firm and hold the same title.Shel finds that when Fran's consumption rises,Shel feels worse off.Fran feels the same way towards Shel's consumption.
Refer to the information given above.Suppose that the firm that employs both Fran and Shel began offering an hour of overtime at 1.5 times their base hourly wage and that both Fran and Shel worked the additional hour.Now suppose that the firm that employs Fran and Shel offers a second hour of overtime also at 1.5 times their base hourly wage.One can predict that:
A)Fran will work even more but not Shel.
B)Shel will work even more but not Fran.
C)neither Fran nor Shel will change their work hours.
D)both Fran and Shel will work even more.

Question

Quizplus · Accepted Answer

Fran and Shel base their happiness on their relative position and each prefers to have more things than the other.If one observes the other working more and earning more money,the other will feel compelled to do the same.

Shel and Fran Are Neighbors