Alda is currently willing to pay $$2,000$ to visit her favorite cousin over spring break. A month ago, she booked a trip costing $$1,200.$

Spring break has arrived, but Alda needs one day to finish an important paper before she goes on her trip. Alda could now cancel her

trip and get a refund of $$800.$ Or$,$ she could pay an additional $$1,000$ to rebook the trip for two days later.

Alda's correct opportunity cost of going to see her cousin is $

$800$

and so Alda

cannot decide whether she should vint

go see her cousin.

Dora and Vicky are bartenders. Dora prefers her tips in cash because she can have the money right away. Credit card tips don't get

paid to the bar staff until the payments are processed, which can take a few days. Vicky still prefers for her customers to put her tip on

their credit cards. Why is this likely Vicky's preference according to the cashless effect?

Cash tips are often dirty and may even smell of alcohol.

Credit card tips are a more accepted form of payment in the stores where Vicky shops.

Vicky is more likely to save her earnings if it takes a few days before she receives her pay.

Customers are likely to spend more on tips when using their credit cards rather than cash.