Consider the following hypothetical scenarios: Scenario A: You are about to purchase a pair of 7 for All Mankind jeans for $175 and a t-shirt for $45.The sales attendant at the store tells you that the pair of jeans you wish to buy is on sale for $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 $175 and a t-shirt for $45.The sales attendant at the store tells you that the t-shirt you wish to buy is on sale for $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 $15 saving amounts to a substantial discount (about 33 per cent).
B) In either scenario if I think a $15 saving is worth the 20-minute trip.
C) In none of these scenarios if I think the $15 saving is not worth the 20-minute trip.
D) B and C are correct answers.

Question

Quizplus · Accepted Answer

Standard economic theory suggests that the decision should be based on whether the $15 saving is worth the 20-minute trip, regardless of the percentage discount. Therefore, both B and C are correct as they depend on the individual's valuation of time versus savings.

Consider the Following Hypothetical Scenarios: Scenario A: You Are About