Geralt and Yennifer have travelled to Tasmania where they are free from any stress, duress and able to behave rationally. They have traded in some trinkets from their previous travels so that they both have several thousands of Australian dollars each.

One morning while in Tasmania they visit a bakery in the town of Ross which sells famous Scallop Pies for $10 each. Geralt buys a Scallop Pie and eats it, while Yennifer does not.

1. Explain why the benefit Geralt receives from eating the Scallop Pie is less than, equal to or greater than $10.

2. Explain why Geralt's net benefit of purchasing and consuming the Scallop Pie is negative, positive or equal to zero.

3. Suppose that Geralt buys a Scallop Pie and gives it to Yennifer which she gladly eats.Using the concepts of benefit and net benefit, explain why Yennifer didn't initially buy a Scallop Pie to eat when the price was $10 but did when given one for free.

4. In the afternoon they visit the Ross bakery again where the price of Scallop Pies has fallen to $7 each. Geralt chooses not to buy a Scallop Pie, but Yennifer does and eats it. What does this suggest about the benefit of consuming goods across time, people and products? Use Geralt's and Yennifer's behaviour in the morning and afternoon to illustrate your answer.