Taylor, Faith, Jay, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Orlando or Las Vegas. If they order the tickets by 11:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person. The following table shows the benefit (in dollar terms) that each roommate would get from the two trips. Roommate Benefit from Orlando Benefit from Las Vegas Taylor Faith $1,250 $800 $550 $800 Jay Jessica $650 $600 $850 $1,050 The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 10:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations. The roommates will get the most total benefit if they choose to go to Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for? Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference. Roommate Taylor Faith Jay Jessica Vote Under majority rule, the roommates will vote to go to . Therefore, majority rule leads to an economically outcome. Suppose Jessica misses the vote, leaving Taylor, Faith, and Jay to figure out where they're going to go.
Taylor, Faith, Jay, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Orlando or Las Vegas. If they order the tickets by 11:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200 per person. The following table shows the benefit (in dollar terms) that each roommate would get from the two trips. Roommate Benefit from Orlando Benefit from Las Vegas Taylor Faith $1,250 $800 $550 $800 Jay Jessica $650 $600 $850 $1,050 The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for 10:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations. The roommates will get the most total benefit if they choose to go to Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for? Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference. Roommate Taylor Faith Jay Jessica Vote Under majority rule, the roommates will vote to go to . Therefore, majority rule leads to an economically outcome. Suppose Jessica misses the vote, leaving Taylor, Faith, and Jay to figure out where they're going to go.
Chapter2: Scarcity And Opportunity Costs
Section: Chapter Questions
Problem 2E
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Transcribed Image Text:Taylor, Faith, Jay, and Jessica are college roommates. They're trying to decide where the four of them should go for spring break: Orlando or Las
Vegas. If they order the tickets by 11:00 PM on February 1, the cost will be just $500 per person. If they miss that deadline, the cost rises to $1,200
per person.
The following table shows the benefit (in dollar terms) that each roommate would get from the two trips.
Roommate
Taylor
Benefit from Orlando Benefit from Las Vegas
Faith
$1,250
$800
$550
$800
Jay
Jessica
$650
$600
$850
$1,050
The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for
10:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations.
The roommates will get the most total benefit if they choose to go to
Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for?
Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference.
Roommate
Taylor
Faith
Jay
Jessica
Vote
Under majority rule, the roommates will vote to go to
. Therefore, majority rule leads to an economically
outcome.
Suppose Jessica misses the vote, leaving Taylor, Faith, and Jay to figure out where they're going to go.
Transcribed Image Text:Taylor
$1,250
$550
Faith
$800
$800
Jay
Jessica
$650
$600
$850
$1,050
The roommates tend to put off making decisions. So, when February 1 rolls around and they still haven't made a decision, they schedule a vote for
10:00 PM that night. In case of a tie, they will flip a coin between the two vacation destinations.
The roommates will get the most total benefit if they choose to go to
Given the individual benefits each roommate receives from the two trips, which trip will each roommate vote for?
Fill in the table with each roommate's preferred location, assuming that a given roommate will abstain if he or she has no preference.
Roommate
Taylor
Faith
Jay
Jessica
Vote
Under majority rule, the roommates will vote to go to
Therefore, majority rule leads to an economically
outcome.
Suppose Jessica misses the vote, leaving Taylor, Faith, and Jay to figure out where they're going to go.
Taylor and Jay argue for their preferred destinations, but Faith offers to vote with Taylor if Taylor will vote on her side in an upcoming class election.
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