Question 11.docx - Question 11 Correct 2.33 points out of...

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Question 11 Correct 2.33 points out of 2.33 Flag question Question text Tony notes that an electronics store is offering a flat $20 off all prices in the store. Tony reasons that if he wants to buy something with a price of $50, then it is a good offer, but if he wants to buy something with a price of $500, then it is not a good offer. This is an example of: Select one: a. inconsistent reasoning; saving $20 is saving $20. b. the proper application of the Cost-Benefit Principle. c. rational choice because saving 40% is better than saving 4%. d. inconsistent reasoning because prices are sunk costs. Feedback The correct answer is: inconsistent reasoning; saving $20 is saving $20. Question 12 Correct 2.33 points out of 2.33 Flag question Question text Suppose a retail store was offering 10% off list prices on all goods. The benefit of the 10% savings is: Select one: a. unrelated to the list price of the good. b. negatively related to the list price of the good.
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