Arnold Van would like to buy some 'sala' set for his new house and Aaron, another consumer would also like to get one. The nearby department store sells a sala set for P35,500 and a local market reseller sells the same sala set for P 30,000 only. Arnold Van bought from the department store and Aaron from the local market. Can you propose reasons how these two people made different decisions?

Arnold Van would like to buy some 'sala' set for his new house and Aaron, another consumer would also like to get one. The nearby department store sells a sala set for P35,500 and a local market reseller sells the same sala set for P 30,000 only. Arnold Van bought from the department store and Aaron from the local market. Can you propose reasons how these two people made different decisions?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Kamryn is deciding between three potential activities on Saturday evening: 1) Staying at home and watching her favorite television show, an activity that she values at $18 and that entails no out-of- pocket costs. 2) Going to the movies with her sister to see the latest blockbuster action film, an activity she values at $30 and that entails $15 in out-of-pocket costs. 3) Going out to dinner with her best friend, an activity she values at $40 and that entails $23 in out-of-pocket costs. a. Which activity should Kamryn choose? b. What is Kamryn's opportunity cost of going to the movies? Instructions: If you are entering a negative number, be sure to include a negative sign (-). $ Staying at home and watching her favorite show O Going out to dinner with her best friend Going to the movies with her sister $ c. Relative to her next best alternative, what is Kamryn's economic surplus from going to the movies? Instructions: If you are entering a negative number, be sure to include a negative…
Alpha's Price Policy High Low OOOO A Multiple Choice C Beta's Price Policy High $20 $20 $10 $30 Low B $30 $10 $15 Refer to the diagram, where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If Beta commits to a high-price policy, Alpha will gain the largest profit by $15 adopting a high-price policy. adopting a low-price policy. adopting a low-price policy, but only if Beta formally agrees to do the same. engaging in nonprice competition only.
Your own a chocolate producing company which can advertise on both television (T) and internet(I). The effect of TV and online commercials on sales is again given byS(T,I) = 500 + 48T−6T2+ 112I−6I2+ 4TI. You have a budget of $25 that you can spend on T and I. The price of aTV commercial is $12per unit and the price of an online commercial is also $12 per unit. 1. Determine the optimal level of TV commercials T and online commercials I if you have to spend all of your budget. You should provide two methods to solve this, by direct substitution and by setting up the Lagrangian. Is the Lagrange multiplier positive or negative? Give an intuitive interpretation of why this is the case? 2. Now determine the optimal level of TV commercials T and online commercials I if you DO NOT have to spend all of your budget. Do you obtain the same answer as subquestion 5.1? What is the Lagrange multiplier equal to in this case? Discuss.
For distract driving
So, in both cases, the chef would be doing the baking and cooking?
You have $3,000 to spend on entertainment this year (lucky you!). The price of a day trip (T) is $40 and the price of a pizza and a movie (M) is $20. Suppose that your utility function is U(TM) T1/3M2/3. a. What combination of T and M will you choose? b. Suppose that the price of day trips rises to $50. How will this change your decision?
Marketers attempt to measure what are often hidden aspects of a consumer's buying habits in order to determine why the person tends to buy the same brand over repeated purchases rather than competing brands. A person's toward a brand thus consists of the individual's beliefs (the cognitive component), his emotions (the affective component) and finally, the individual's behaviors during the purchase stage. A motivation В attitude C personality D social class
impacts of marginal utility. Imagine that you are a seller of phones: How can you increase the consumer demand curve by helping increase the marginal utility for consumers? Detail specific steps to take and provide examples.
Mililani business owner Selina runs a small hair salon and does laundry on a regular basis to clean uniforms, hair cloths, client robes, and other washables. Selina is running low on detergent and saw the same-sized boxes of Arm & Hammer laundry detergent on sale at two different stores. Sale price of detergent Regular price of detergent Store Store 1 Store 2 $9.98, limit 4, with additional boxes at regular price Buy two get one free, limit 1 free box, with additional boxes at regular price If Selina only has time to go to one of these stores and needs 3 boxes, whose advice is correct? Select the cost of 3 boxes of Arm & Hammer Laundry detergent at Select $15.99 Selina's friend Kimo said that Store 2 would be cheaper and noted that Store 1's regular price is cheaper than Store 2's regular price. Selina's other friend Lani said that it would be cheaper to go to Store 1, pointing out that Store 2's sale price is still higher than Store 1. Would the situation change if Selina needs 5…
How does household made choices based on budget or their utility satisfaction? Justfiy
Jenny is going to rent a truck for one day. There are two companies she can choose from, and they have the following prices. Company A charges $90 and allows unlimited mileage. Company B has an initial fee of $55 and charges an additional $0.70 for every mile driven.
There is a big sale at the Try-n-Save store in Springfield. Thor purchases a new pair of sweat pants on sale for $75, marked down from $98. What percent discount is this? Round your answer to the nearest whole.