Question

Soo jin shares a oneminus−bedroom apartment with her classmate. her share of the rent is​ $700 per month. she is considering moving to a studio apartment which she will not have to share with anyone. the studio apartment rents for​ $950 per month.​ recently, you ran into soo jin on campus and she tells you that she has moved into the studio apartment. soo jin is as rational as any other person. as an economics​ student, you rightly conclude that

a. soo jin did not have a​ choice; her roommate was a slob.
b. soo jin figures that the additional benefit of having her own place​ (as opposed to​ sharing) is at least​ $950.
c. the cost of having​ one's own space outweighs the benefits.
d. soo jin figures that the additional benefit of having her own place​ (as opposed to​ sharing) is at least​ $250.

Answer 1

As an economics major, the individual will rightly conclude that Soo jin, who used to share an apartment with her classmate figures that having her own place as a benefit is at least $250 as this is the sum that she added in addition when she moved to a studio for her own. The correct answer is letter d.