Susle knows that too many sugary treats, while delicious when eaten, have long-term adverse effects on weight and health. Based on this information, a behavioral economist would expect Susie to Multiple Choice carefully weigh the short-term benefits against the long-term costs and make a rational decision about how many treats to eat. eat more sugary treats than is optimal, as she likely gives more weight to present events and outcomes than ones in the future. give away most of her sugary treats in an effort to resist temptation. compute the caloric intake and calculate how many hours of exercise would be needed to burn off the calories from each treat.

You have preferences u(x,y) = xy over games (X) and videos (Y) you can buy on a platform and a $360 budget, with prices px = 9 and py = 6. How much would you be willing to pay (at most) as a subscription fee for each of the following plans (you can buy any amount of Y in each plan at the original price, unless otherwise stated): (a) Plan A : You can buy (any amount of) X at a discounted price px = 4(b) Plan B : You are given 40 units of X for free, but you cannot buy any more of X. (surely can buy any amount of Y)(c) Plan C : You are given 30 units of X for free, but you cannot buy any more of X; you also have a discounted price for good Y; py = 4.

With tip giving in a restaurant in mind, how might reducing your economic payoff still be rational.

Select the correct option : When the expected utility of offer A is larger than offer B, a rational individual would always prefer offer A to offer B. 1. True 2.False