Alda is willing to pay $2,000 to visit her favoritecousin over spring break. A month ago, she bookeda trip costing $1,200. Spring break has arrived, butAlda needs one day to finish an important paperbefore she goes. Alda could cancel her trip and geta refund of $800. Or, she could pay an additional$1,000 (on top of the $1,200 she already paid) torebook the trip for two days later. Explain whatAlda should do.
Alda is willing to pay $2,000 to visit her favoritecousin over spring break. A month ago, she bookeda trip costing $1,200. Spring break has arrived, butAlda needs one day to finish an important paperbefore she goes. Alda could cancel her trip and geta refund of $800. Or, she could pay an additional$1,000 (on top of the $1,200 she already paid) torebook the trip for two days later. Explain whatAlda should do.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Alda is willing to pay $2,000 to visit her favorite
cousin over spring break. A month ago, she booked
a trip costing $1,200. Spring break has arrived, but
Alda needs one day to finish an important paper
before she goes. Alda could cancel her trip and get
a refund of $800. Or, she could pay an additional
$1,000 (on top of the $1,200 she already paid) to
rebook the trip for two days later. Explain what
Alda should do.
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