Exercises: Informed Consumer Decisions and Pricing
List four factors that a careful consumer should consider before making a major purchase, such as a laptop or a used car. For each factor, write one short sentence…
List four factors that a careful consumer should consider before making a major purchase, such as a laptop or a used car. For each factor, write one short sentence explaining why it matters.
Define "durable good" and "nondurable good." Then classify each of the following items as one or the other: a refrigerator, a bag of tortilla chips, a pair of running…
Define "durable good" and "nondurable good." Then classify each of the following items as one or the other: a refrigerator, a bag of tortilla chips, a pair of running shoes, a tank of gas.
A store advertises a hoodie for "$\$24.99…
A store advertises a hoodie for "$\$24.99$." Explain in one or two sentences why sellers often end prices in .99, and name one thing a shopper should still add to find the real cost at the register.
Aaliyah is choosing between two washing machines. Machine A costs $\$620$ and is expected to last 10 years. Machine B costs $\$480$ and is expected to last 6 years.…
Aaliyah is choosing between two washing machines. Machine A costs $\$620$ and is expected to last 10 years. Machine B costs $\$480$ and is expected to last 6 years. Ignoring repairs and energy use, calculate the cost per year of each machine. Then say which is the better value and name one other cost she should check before deciding.
In 2020, a pack of notebooks cost $\$10.00$. Because of inflation, the same pack costs $\$12.00$ today. Calculate the percent increase in price. Then explain what this…
In 2020, a pack of notebooks cost $\$10.00$. Because of inflation, the same pack costs $\$12.00$ today. Calculate the percent increase in price. Then explain what this means for a student whose weekly allowance stayed at $\$20$ over the same period.
Marcus wants to buy a used snowboard listed online for $\$180…
Marcus wants to buy a used snowboard listed online for $\$180$. The seller says, "I'm flexible on price." Describe three steps Marcus can take to prepare for negotiating, and explain how each step could help him pay less.
Priya needs a new smartphone. Phone X costs $\$700$ and has a 4-year expected life. Phone Y costs $\$450$, has a 2-year expected life, and she would need a $\$40…
Priya needs a new smartphone. Phone X costs $\$700$ and has a 4-year expected life. Phone Y costs $\$450$, has a 2-year expected life, and she would need a $\$40$ case-and-screen-protector package for each phone she buys. Phone X needs only one package. Calculate the total cost over 4 years for each option, assuming she buys Phone Y twice and ignoring resale value. Then argue which choice you would recommend, naming at least one non-cost factor that could change your answer.
A store advertises a $\$250$ pair of headphones as "40% off, today only!" A competitor sells the same model every day for $\$155$. Local sales tax is 8%. Calculate the…
A store advertises a $\$250$ pair of headphones as "40% off, today only!" A competitor sells the same model every day for $\$155$. Local sales tax is 8%. Calculate the final price at each store, including tax. Then explain how the "today only" wording and the "original" price may influence a shopper's decision, and describe a process the shopper could use to avoid being swayed by it.