Question

Jacques and his friend go out for lunch to a nearby food court. Jacques is trying to decide between ordering a burger or a sandwich. Which of the following factors will directly affect his decision? Check all that apply. The friend's recommendations The friend's budget The expected benefits of the two options The color of his friend's car The relative prices of burgers and sandwiches Suppose that a glass of apple juice at Jacques's gym cafeteria costs as much as a can of soda. Jacques knows that while apple juice improves health by providing important vitamins, soda drinks contain artificial ingredients and too much sugar, which causes diabetes. Jacques is thirsty and buys himself a glass of juice. How might economic theory explain Jacques's choice? O As juice and soda cost the same, Jacques buys the drink that he expects will yield him the greatest benefit. O Jacques bought juice because his friend was having it. O Because Jacques has a limited income, he buys more juice and less soda. O Jacques probably has been drinking too much soda lately and would like to have a different drink this time around.

Answer 1

1. following will affect his choice:

His friend's choice as he can opt for the other dish and they both can share.

expected benefit of the two options.

relative price of burgers and sandwiches.

2. As juice and soda cost the same he will go for the drink which will give him greatest benefits. In this case he will opt for juice instead of soda. Other options are not consistent with the information given in the question.