Question

Cars that weigh more tend to be safer than lightweight cars. At the same time, they use more gasoline because they are heavier. (a) Identify the trade-offs and opportunity cost involved in choosing either alternative. (b) Based on this information, which car would you choose to buy and why? (c) Would your answer change if the price of gasoline doubled? If you had children? Explain how each factor would affect your cost-benefit analysis.

Answer 1

(a) A heavy car tradeoff money & a light car trade off safety.

(b) I would chose a car which is neither too heavy or light and which does not use too much gasoline.

(c) If price doubled I would tend to go for a lighter car. If inherited million dollars a heavy car ,if had children lighter car as need to save for them.