Question

You are going to a dinner whith three (3) friends, one who likes steak, another wine, and the third is a vegetarian (which is assumed to be the least expensive). Which is true? a. How the bill is shared has no effect on what and how much people choose to eat b. The vegetarian will be better off with equal sharing of the bill c. The wine-drinker will argue for equal shares, and will drink as fast (and/or as much) as possible d. Equal sharing of the bill ensures that people order a similar dollar amount of food

Answer 1

Answer:

the answer is option D)Equal sharing of the bill ensures that people order a similar dollar amount of food

Explanation:

The theory of consumer behavior states that "consumers allocate incomes among different goods and services to maximize their utility"

Consumer behavior revolves around three parameters their preferences, budget constraints, and options available.

The budget constraint will definitely influence the choice of what to buy within the options available to maximize utility. That means how the bill is shared among the three friends will ultimately affect how much they will chose to eat.

Secondly, The vegetarian will not be better off with equal sharing of the bill because the cost of his food according to the data provided is less.

We don not know for sure if the wine drinker drinks too much or whether he will want his other friends to foot the extra bill from the cost of his wine but we are certain that equal sharing of the bill ensures that people order a similar dollar amount of food.