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Straighterline Macroeconomics Exam| Questions Answered 100% Correct/Verified Solutions

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The last time gas prices increased drastically, sales of large Sport Utility Vehicles (SUVs) fell. Why? - ANSWER Higher gas prices increased the cost of driving a SUV. You want to buy a TV that regularly costs $250. You can either buy the TV from a nearby store or from a store that's downtown. Relative to going to the nearby store, driving downtown involves additional time and gas. The downtown store, however, has a 10% off sale this week. Last week you drove downtown to save $20 on some concert tickets, a 15% savings. Should you drive downtown to buy the TV? - ANSWER Yes, because you will save more than $20.

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