Answered

This chart shows the actual pricing history for three items.

Historical Pricing for Small-Scale Items

\begin{tabular}{|c|c|c|c|c|}
\hline
Item & Retail price & \begin{tabular}{l}
Retail price \\
6 months later
\end{tabular} & Auction price \\
\hline
Game system & \[tex]$249 & \$[/tex]228 & \[tex]$450 \\
\hline
Smartphone & \$[/tex]599 & \[tex]$399 & - \\
\hline
DVD & \$[/tex]24 & \[tex]$19 & \$[/tex]16 \\
\hline
\end{tabular}

For which product(s) would it be most beneficial to wait before buying?

A. Game system

B. Smartphone

C. DVD

D. It's most beneficial to buy all now.



Answer :

GinnyAnswer
Let's analyze each product to determine which would be most beneficial to wait before buying by calculating the savings after 6 months.

Game System:
1. Retail Price: \[tex]$249 2. Price 6 months later: \$[/tex]228
3. Savings: Retail Price - Price 6 months later
[tex]\[ \$249 - \$228 = \$21 \][/tex]
Savings for waiting 6 months to buy the game system: \[tex]$21 Smartphone: 1. Retail Price: \$[/tex]599
2. Price 6 months later: \[tex]$399 3. Savings: Retail Price - Price 6 months later \[ \$[/tex]599 - \[tex]$399 = \$[/tex]200
\]
Savings for waiting 6 months to buy the smartphone: \[tex]$200 DVD: 1. Retail Price: \$[/tex]24
2. Price 6 months later: \[tex]$19 3. Savings: Retail Price - Price 6 months later \[ \$[/tex]24 - \[tex]$19 = \$[/tex]5
\]
Savings for waiting 6 months to buy the DVD: \[tex]$5 Now, let's compare the savings for each product: - Game System savings: \$[/tex]21
- Smartphone savings: \[tex]$200 - DVD savings: \$[/tex]5

From these calculations, we can see that the smartphone has the highest savings (\$200) if you wait 6 months before buying. Therefore, it is most beneficial to wait before buying the smartphone.

Other Questions