4.1 For each of the following events, consider how you might react. What things might you consume more or less of? Would you work more or less? Would you increase or decrease your saving? Are your responses consistent with the discussion of household behavior in this chapter?

a. The price of gasoline falls by 50 percent, and you drive 40 miles each way to and from school.

b. Your 98-year-old great aunt passes away and, much to your surprise, leaves you an inheritance of $50,000.

c. Your mother’s employer transfers her to an office in another state, and the rest of your family stays behind so you can continue to live at home while going to school.

She returns to visit every other weekend.

d. You are awarded a scholarship that will pay half of your tuition for the next 3 years.

e. The 100 shares of Apple stock you bought for $20 per share in 2004 with your babysitting money have turned into 1,400 shares after stock splits and are now worth

$130 per share.

f. The small company where you work part time has a banner year, and the boss gives all part-time employees a 25 percent raise.