Question

Jared's friends invite him to dinner at a new restaurant in town. Money has been tight this month, and the new restaurant offers the same meal as another local restaurant but at a higher price. Jared declines the invitation to the new restaurant and opts to dine at the less expensive establishment. Which of the following best represents the reason for Jared's decision?

Answer 1

The reason for Jared's decision is that money is tight with him. He needs to go to the other restaurant because the food is less expensive and he gets the same meal. It's a win-win situation for him.

Answer 2

The answer is: High food prices at the new restaurant

People's decision regarding everything in their life often related to the actual price level of the products that we usually consume.

The likelihood of us consuming high priced products would most likely influenced by our income level rather than our actual needs. For those who earn more, eating in the expensive restaurant would not bother their other necessities. This might not be the same for a person like jared.