(a)
To analyze the transaction on which the men are discussing.
(a)
Explanation of Solution
The two men are the prospective buyers of the vehicle. They are discussing about the price and effectiveness of the vehicle.
(b)
To analyze the reason for car being fuel efficient.
(b)
Explanation of Solution
The car shown in the picture is a toy car. It would be used for the entertainment for children. Due to this, the car is exceptionally fuel efficient.
(c)
To analyze the trade off which is being referred to.
(c)
Explanation of Solution
Trade off is the sacrifice of one trait for gaining other.
For getting exceptionally fuel efficient vehicle, the buyers have to do a trade off with the size of the vehicle. Also, to get that efficiency, the actual vehicle would not be provided.
Chapter 1 Solutions
Economics Today and Tomorrow, Student Edition
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