Question

You and your family visit Orlando for a week. While there, you decide to go to Universal Studios. When you arrive, you notice that each family member can buy a day pass for $115 or a two-day pass for $150. If you want a three-day pass, the price is $170. Suppose your benefit, measured in utility, is equal to $120 in value the first day you go to the park, $50 more if you go a second day, and $15 more for the third day. What ticket, if any, should you buy? Choose one:
A. no ticket
B. a one-day ticket
C. a two-day ticket
D. a three-day ticket

Answer 1

Answer:

C. a two-day ticket

Explanation:

According to the given situation the two-day ticket is wrong as of value because the amount that determined in ultility would be equivalent to the $120

The value in one day is

= $120 - $115

= $5

And,

= $120 + $50

= $170

On second day

= $170 - $150

= $20

And,

= $170 +  $15

= $185

On third day

= $185 - 170

= $15

So based on this the two ticket should be chosen