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Economic Enigma
6
Going out to eat rather than cooking and eating at home
Markets-coordinate-trade
Why are name brand products more expensive than great value brands?
Cost vs. Benefits
This situation is best explained by markets coordinate trade because people go out and spend their money on restaurants rather than saving money and eating at home, where they can feed their whole family for no more than half the cost it would be to eat out.
The reason that cost vs. benefit best explains this is that you have the cost of the name brand item which is higher than the great value item . You as a consumer can weigh the benefit of having the more expensive name brand product vs. the less expensive great value brand.
Buying only what you need vs. buying in bulk
Economic Enigma
Thinking at the Margin
Taylor Rutter
&
Colton Monds
Buying in bulk instead of buying only what you need is thinking at the margin. When you buy in bulk your thinking ahead because you are saving money by buying more of the same product at the same time to save you money, instead of buying the same products separate and spending more money.
You can buy one pair of nike shoes for the same price as a pair of vans but the vans come with a lanyard.
Incentives Matter
This situation is described by incentives matter because it is showing that there are two similar products at the same price, but since one product comes with an incentive(the lanyard), more costumers would be inclined to buy that product.