Consumer Defy Common Sense
1. C=$700+$85x, C= $700+($85)10 You will set this equation up as C=the cost, which is what you are trying to find. Then you will have the 700 plus whatever 85 times 10 equals. I took 85 times 10 because in the readings it says 10 years. That equals $850 and when you add the $700, you get $1550. You could also set this up as C=(85)10+700 and you would get the same value for C.
2. Y=$1000+$25, Y=$1000+($25)10 You will set this equation up as C= the cost, which is what you are trying to find. Then you will have the 1000 plus whatever 25 times 10 equals. I took 25 times 10 because in the readings it says 10 years. When you multiply 25 by 10 you get 250, when you add the $1000 and $250 you get $1250. …show more content…
By subtracting the cost of refrigerator 1 from the cost of refrigerator 2 you find there is a $300-dollar difference between the two difference refrigerators.
4. $700+$85x=$1000+$25x To find out how many years it will take each of these refrigerators to equal each other you set both equations to equal one another. You simply solve the equation to find l x. So you will take 85x-25x, and you will get 60x. You then will then take 1000-700 and get 300. Next you will divide the 300 by 60 and you will find it will take 5 years before the cost of the two refrigerators are equal to each other.
When talking about how consumer defy common sense our books illustrate an example of discount rate. Winning the lottery is a great example, recently the lottery was just in the billions. If a person took all of their money at one time they would lose a ton of their money to taxes. If they spread it out over years at a time they would still be paying taxes on it, but would be receiving more money because they are taking a smaller amount at a time. However, if they want the money immediately, economist see them as a person with a high discount rate, which despite the practical thinking on the subject occurs a
1. C=$700+$85x, C= $700+($85)10 You will set this equation up as C=the cost, which is what you are trying to find. Then you will have the 700 plus whatever 85 times 10 equals. I took 85 times 10 because in the readings it says 10 years. That equals $850 and when you add the $700, you get $1550. You could also set this up as C=(85)10+700 and you would get the same value for C.
2. Y=$1000+$25, Y=$1000+($25)10 You will set this equation up as C= the cost, which is what you are trying to find. Then you will have the 1000 plus whatever 25 times 10 equals. I took 25 times 10 because in the readings it says 10 years. When you multiply 25 by 10 you get 250, when you add the $1000 and $250 you get $1250. …show more content…
By subtracting the cost of refrigerator 1 from the cost of refrigerator 2 you find there is a $300-dollar difference between the two difference refrigerators.
4. $700+$85x=$1000+$25x To find out how many years it will take each of these refrigerators to equal each other you set both equations to equal one another. You simply solve the equation to find l x. So you will take 85x-25x, and you will get 60x. You then will then take 1000-700 and get 300. Next you will divide the 300 by 60 and you will find it will take 5 years before the cost of the two refrigerators are equal to each other.
When talking about how consumer defy common sense our books illustrate an example of discount rate. Winning the lottery is a great example, recently the lottery was just in the billions. If a person took all of their money at one time they would lose a ton of their money to taxes. If they spread it out over years at a time they would still be paying taxes on it, but would be receiving more money because they are taking a smaller amount at a time. However, if they want the money immediately, economist see them as a person with a high discount rate, which despite the practical thinking on the subject occurs a