6.6 Apply the results of Problem 6.5 to explain the following observations:

a. It is difficult to find high-quality applies to buy in Washington state or good fresh oranges in Florida.

b. People with significant baby-sitting expenses are more likely to have meals they eat out at expensive restaurants than are those without such expenses.

c. Individuals with a high value of time are more likely to fly the Concorde than those with a lower value of time.

d. Individuals are more likely to search for bargains for expensive items than for cheap ones.

(Note: Observations

(b) and

(d) form the bases for perhaps the only two murder mysteries in which an economist solves the crime. See Marshall Jevons, Murder at the Margin and The Fatal Equilibrium.)