Suppose you’re trying to get your friends to go todinner with you. Would it be wiser to frame thedecision as costing only $5 more than the foodthey’d make for themselves, or that it will cost$5 less than every other restaurant around town?

Suppose you’re trying to get your friends to go todinner with you. Would it be wiser to frame thedecision as costing only $5 more than the foodthey’d make for themselves, or that it will cost$5 less than every other restaurant around town?

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 9QP

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Suppose you’re trying to get your friends to go to
dinner with you. Would it be wiser to frame the
decision as costing only $5 more than the food
they’d make for themselves, or that it will cost
$5 less than every other restaurant around town?

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In 2010 the government’s main medical adviser drew up plans for a minimum price for alcohol intended to double the cost of some drinks.Under the proposal no drinks could be sold for less than 50 pence per unit of alcohol theycontain. This would mean most bottles of wine could not be sold for under £4.50. Theproposal is aimed at reducing alcohol abuse. A spokesman for an opposition party saidthat it was more important to deal with peoples’ attitudes and not just the price of alcohol.The Portman Group, set up by drinks manufacturers to promote sensible drinking, arguesthat it would damage the majority of drinkers who behave responsibly in terms of theirconsumption.The NHS bill for alcohol abuse is an estimated £2.7bn a year. Recent figures showhospital admissions linked to alcohol use have more than doubled in England since 1995.Alcohol was the main or secondary cause of 207,800 NHS admissions in 2006/7,compared to 93,500 in 1995/96. The number of alcohol-related deaths in England…