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QUESTION 11 (20 marks} Julia is in a dress shop and nds a nice hat. The tag price is $65 and she thinks it is

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QUESTION 11 (20 marks} Julia is in a dress shop and nds a nice hat. The tag price is $65 and she thinks it is too expensive. She decides not to buy and leaves the shop, thinking that she would have purchased the hat if the price had been no higher than $58. About one hour later, Julia walks into another shop and nds the exactly same hat with the price tag of 'originally $90 and now 30% off\" . She is attracted to the promotion deal and decides to buy $63. In the meantime, right next to the counter's desk, she nds displayed another hat of the same brand and design but of different color priced at $90 without discount. She feels even more satised of her decision. When Julia is about to open her wallet, the salesman offers another promotion option of lucky draw game: Julia can roll a die and enjoy a lower price of $39 if she rolls a 1 or a 6, but she needs to pay $66 if she rolls other numbers. Either case, she is obligated to buy the hat if she accepts the lucky draw offer. Aer a minute of thinking, Julia declines the lucky draw game. When Julia is about to pay, the salesman points to their payment policy written on the wall: \"2% surcharge for a credit card payment', which would charge $64.26 on her credit card. She pays $63 in cash, thinking she might have not purchased the hat if the shop's pricing was '$64.26, with the cash discount price of $63\". On the way home, Julia meets a friend who gets excited about the hat Julia bought and o'ers her $65, in cash, for the hat. Julia refuses to sell it and keeps heading home, dancing to Pharrell Williams\" hit song 'Happy'. Question: Briey discuss Julia's shopping behavior from microfbehavioral economics perspectives

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