CH 21 PPT - Chapter21 The Theory of Consumer Choice...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
The Theory of Consumer Choice M icroeconomics P R I N C I P L E S   O F P R I N C I P L E S   O F N. Gregory Mankiw N. Gregory Mankiw Chapter 21
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
1. A pizza parlor offers an all-you-can-eat lunch for $8. You pay at the door, and then the waiter brings you as many slices of pizza as you like. A researcher performed the following experiment. He had an assistant serve as the waiter for one group of tables. The “waiter” selected half the tables at random and gave everyone at those tables an $8 refund before taking orders. The remaining half the tables got no refund. He then kept careful count of the number of slices of pizza each diner ate. What difference, if any, do you predict in the amount eaten by the two groups?
Background image of page 2
1. You would like to play tennis on Saturday morning. The weather might be bad, and so you make a reservation at an indoor court. You have paid $40 for two hours of court time; the $40 cannot be refunded. The weather on Saturday morning turns out to be beautiful and outdoor courts are available. You prefer playing outdoors to playing indoors. Where would you play?
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
3. You have tickets to a basketball game that will be played 60 miles away. Suddenly, it starts snowing very hard. The roads remain open, but the drive will be difficult.
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/25/2011 for the course BMGT 220 taught by Professor Bulmash during the Spring '08 term at Maryland.

Page1 / 33

CH 21 PPT - Chapter21 The Theory of Consumer Choice...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online