Economic enigma is, "Why do people pay more for name brand products when there are generic brands of the same product available for less?"

Step 3: Apply the principles of economic thinking. Choose the three principles of economic thinking that best explain your enigma. List the reasons that each of these principles helps explain why your enigma does not defy common sense. Principle 1: Scarcity forces tradeoffs-Limited resources force people to make choices and face tradeoffs when they choose. Principle 2: Cost versus benefits-People choose something when the benefits of doing so are greater than the costs. Principle 3: Thinking at the margin-Most of the decisions made each day involve choices about a little more or a little less of something. Principle 4: Incentives matter-People respond to incentives in generally predictable ways. Principle 5: Trade makes people better off-By focusing on what we do well and then trading with others, we will end up with more and better choices than by trying to do everything for ourselves. Principle 6: Markets coordinate trade-Markets usually do better than anyone or anything else at coordinating exchanges between buyers and sellers. Principle 7: Future consequences count-Decisions made today have future (and often unintended) consequences. Principles of economic thinking that best Reasons that each of these principles explain your enigma helps explain my enigma