# Although she would prefer option c she cannot choose

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Although she would prefer option C, she cannot choose it due to budget constraints.Option C is on the budget constraint.
CONCEPTOptimal Choice4Select the statement below that is true.
CONCEPTConsumer Choice Theory5On a popular Internet deals site, consumers purchased 1,000 weekend getaway packages when the price was\$300. After the price increased to \$400, consumers purchased 600 packages. This graph shows the elasticity ofdemand for the weekend getaway package.
Using the midpoint formula, what is the own-price elasticity of the weekend getaway package?
CONCEPTOwn-Price Elasticity6According to consumer choice theory, what will a rational consumer do?
Always select the bundle of goods below his/her budget constraintChoose the bundle of goods that is least expensive, in order to maximize utilityCONCEPTConsumer Choice Theory7When the price of surfboards goes down, demand for both surfboards and wetsuits increases, meaningthat these two goods are which of the following, based on their elasticity?Complement goodsNormal goodsUnit elasticSubstitute goods
CONCEPTCross-Price Elasticity8Ryan greatly preferred oranges during long football practices. His teammates often joked that Ryan would pay10 times the usual amount to have his oranges rather than eat other fruits, and they always knew when the pricehad jumped too much by the days when Ryan showed up with cheaper bananas instead.What type of elasticity can be used to describe the oranges that Ryan eats during practice?

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