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Ms. Rem just landed at LAX airport, and (assume) that the only...

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Ms. Rem just landed at LAX airport, and (assume) that the only...

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

Answer & Explanation

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Answered by marieljoysakalam on coursehero.com
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