6.4 Apply the results of Problem 6.8 to explain the following observations: sin

a. It is difficult to find high-quality apples to buy in Washington State or good fresh oranges i Florida.

b. People with significant baby sitting expenses are more likely to have meals out at expensive (rather than cheap) 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.