QUESTION 10 4.000 Related to the Economics in Practice on p. 125: Suppose Store

Question

QUESTION 10 4.000 Related to the Economics in Practice on p. 125: Suppose Store ABC runs an ad claiming to have "low prices every day" They even demonstrate that the total expenditure for a basket of groceries is less at their store than at any of their competitors. Which of the following statements is not true? O You would clearty be better off shopping at Store ABC 0 Your preferences may not be consistent with the basket used by Store ABC (in their example), thus it is not clear whether or not you would be better off shopping at Store ABC or not O Even if your preferences are generally consistent with the basket used by Store ABC, it may still be possible for you to substitute other similar goods for those in the basket used by Store ABC (in their example) and thus spend less at another store O All ot these statements are true

Explanation / Answer

ANSWER-

option (a)

You would clearly be better off shopping at store ABC.

Because in the question only basket example is given and it does not means that price of all the items in the store ABC is less than the other store price.

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