Question

1- Answer the following questions about consumer preferences:

a. If Nada prefers Diet Coke to Diet Pepsi and Diet Pepsi to regular Pepsi but is indifferent between Diet Coke and Classic Coke, what are her preferences between Classic Coke and regular Pepsi?

b. If Hadi purchases a Ford Mustang rather than a Ferrari, what are his preferences between the two cars?

c. If Ayya purchases a Ferrari rather than a Ford Mustang, what are her preferences between the two cars?

d. Samer and Saba are having a soft drink together. Coke and Pepsi are the same price. If Samer orders a Pepsi and Saba orders a Coke, what are the preferences of each between the two colas?

Answer 1

Answer-A, If Nada prefers Diet Coke to Diet Pepsi and Diet Pepsi to regular Pepsi but is indifferent between Diet Coke and Classic Coke, what are her preferences between Classic Coke and regular Pepsi, in this case, Nada prefers classic coke to regular Pepsi

B, If Hadi purchases a Ford Mustang rather than a Ferrari, what are his preferences between the two cars, in this case, cannot say because the Ferrari obviously costs more than the ford mustang. He might prefer the Ferrari but isn’t willing or able to pay the higher price.

C, If Ayya purchases a Ferrari rather than a Ford Mustang, what are her preferences between the two cars in this case Arya clearly prefers the Ferrari because Arya is willing to pay the higher price.

D, Samer, and Saba are having a soft drink together. Coke and Pepsi are the same price. If Samer orders a Pepsi and Saba orders a Coke, what are the preferences of each between the two colas,in this case here both are them are choosing different brand colas according to their choice and taste.