Related to the Economics in Practiceon p. 125: Suppose Store ABC ...

[hubes95]

Related to the 
Economics in Practice on p. 125: Suppose Store ABC runs an ad claiming to have "low prices everyday." They even demonstrate that the total expenditure for a basket of groceries is less at their store than at any of their competitors. Which of the following statements is 
not true?

◦ You would clearly be better off shopping at Store ABC.
◦ Your preferences may not be consistent with the basket used by Store ABC (in their example), thus it is not clear whether or not you would be better off shopping at Store ABC or not.
◦ Even if your preferences are generally consistent with the basket used by Store ABC, it may still be possible for you to substitute other similar goods for those in the basket used by Store ABC (in their example) and thus spend less at another store.
◦ All of these statements are true.

[canderson530]

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[hubes95]

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[canderson530]

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