Ms. Rem just landed at LAX airport, and (assume) that the only feasible mode of transportation to downtown Los Angeles is Uber, and that Uber comes in two flavors: Uber-Economy (normally costing around $20) and Uber-Luxury (normally costing around $30). Ms. Rem usually takes Uber-Economy, but sometimes splurges for Uber-Luxury since she likes the champagne and hot tub in the back seat. Upon arrival at LAX, Ms. Rem discovers that the city council has just imposed a $20 additional fee on all Uber rides from LAX, tacked onto the "normal cost." Assuming that she has no alternative than to take Uber, and that (in either case) the one-way Uber fee is thankfully a small part of her wealth, will she be more likely or less likely than normal to splurge for the Uber-Luxury?
a-More likely
b-Less likely
c-No difference
d-None of the above
Unlock access to this and over
10,000 step-by-step explanations
Have an account? Log In