Question

Mary will drive across town to take advantage of a 40 percent off sale on a $40 blouse, but will not do so to take advantage of a 10 percent off sale on a $1,000 stereo. Assuming that her alternative is to pay list price for both products at the department store next to her home, is her behavior rational?

Answer 1

Answer:

No, her behavior is not rational.

Explanation:

Mary would save $16 on the $40 blouse and $100 on the $1,000 stereo. Considering this, she should drive across town if the discount is higher than the cost of driving to go there. So, taking into account that on the blouse she would save $16 and on the stereo she would save $100, it is not rational that she would make the trip for the discount on the blouse but she won't do it for the discount on the stereo.

Answer 2

Her behavior is not rational because the dollar amount she saves from the driving accros the town to get the blouse is less than the amount she would save on the stereo.

The following information should be considered:

• There is a 40 percent off sale on a $40 blouse.
• It take advantage of a 10 percent off sale on a $1,000 stereo.
• The amount i.e saved on the blouse is $16 that come from 40% of 40.
• And, the amount saved on stereo is $100 i.e. 10% of $1,000.

Learn more: brainly.com/question/17429689