Question
Suppose Sandy is moving to Washington, D.C. for a year-long job working for the government. She has decided to rent one of two apartments. Both
Suppose Sandy is moving to Washington, D.C. for a year-long job working for the government. She has decided to rent one of two apartments. Both apartments cost $1,000 per month and are identical except for the fact that one is a monthly rental and the other has a year-long lease. Which of the following best explains why Sandy might pick the year-long lease?
Select one:
a. There is no good reason for Sandy to pick the year-long lease because the two apartments are identical.
b. Sandy might worry that if she picks the monthly rental, she will get kicked out if the landlord finds someone willing to pay more than $1,000 per month.
c. Sandy might worry that if she picks the monthly rental, she will have to move if she finds another apartment for less than $1,000 per month.
d. There is no good reason for Sandy to pick the year-long lease because the monthly rental allows her more flexibility.
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