Question

Suppose on Friday night you have a choice to go either to a Katy Perry concert or a Lady Gaga concert. You won a free ticket to see Katy Perry. You would pay as much as $200 to see Lady Gaga perform, but tickets to her show cost $100 . Assume that you end up going to the Katy Perry concert. Since you went to the Katy Perry concert, you must be willing to pay at least $ to see Katy Perry.

Answer 1

Since you went to Katy Perry concert, you must be willing to pay at slightest $100 to see Katy Perry. You want to go to Lady Gaga concert and you're prepared to pay as much as $200 to see her appear, indeed in spite of the fact that the section ticket expense is $100. This implies that, you simply must be willing to pay at slightest $100 to see another appear, in case you choose to grant up Lady Gaga show.