Asked by Bryan Cakir on Jul 21, 2024
Verified
Mikaela is buying a new motorcycle.She has narrowed her choices to a BMW Classic Montauk or a Honda Valkyrie Rune.She likes the Honda exactly twice as much,but it costs about 40% more.If both bikes are in her budget,she should buy the Honda.
Honda Valkyrie Rune
A specific model of a large, luxury cruiser motorcycle produced by Honda, known for its unique design and powerful engine.
- Use the optimal consumption rule to assess consumer habits.
- Interpret and analyze consumption bundles within and beyond budget constraints.
Verified Answer
SB
Sadie BuchananJul 23, 2024
Final Answer :
True
Explanation :
Given that Mikaela likes the Honda twice as much and it is within her budget despite being 40% more expensive, it makes sense for her to choose the Honda for greater satisfaction.
Learning Objectives
- Use the optimal consumption rule to assess consumer habits.
- Interpret and analyze consumption bundles within and beyond budget constraints.