Explain the meaning of the following statements in terms of the consumer theory

Question

Explain the meaning of the following statements in terms of the consumer theory in chapter 5.
a. “I think you get more for your money from Honda Accord than from Toyota Camry.”
b. “I wanted to buy an iPhone 5 rather than a Samsung Galaxy, but it just wasn’t worth it.”
c. “I’d like to go to Hawaii in the summer, but I just can’t afford it,” said Don. Jill asked, “Don’t you have enough
money in your account?” Don replied, “Yeah, but I can’t afford to go.”
d. “I’ll have to flip a coin to decide what to have for lunch, soup or salad.”

Explanation / Answer

A) More for you money means the value that you get out of car like the luxury of leathers, ride quality and fuel econmy. More importantly they were referring to fuel economy, maintanance costs and depretiation

B) It means that the price of iphone5 is not justified and it is not worth the cost. So the user want to choose the alternate

C) He cannot afford to spend the money in that bank, May be he has other payments to make and this kind of saving behavior is to save money for a bad day or just to pay other months bills

D) User likes both equally so he just want to flip the coin to try luck. It means he likes both but couldnt really decide on what to eat.

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