If the deductible is $200 and the co-payment is 20%, on a covered expense of $1200 the individual will pay ________, and their insurance company will pay ________.

Refer to Figure 3-1. An increase in taste or preference would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Consider a car dealership that advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if

A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.