You order a $20 sweatshirt online for a Father's Day gift

Economics Dec 23, 2020

You order a $20 sweatshirt online for a Father's Day gift. The shipping charge is $10. You can get free shipping if your order totals $25 or more. Consequently, you order a $5 bobblehead doll, even though neither you nor your father really likes bobblehead dolls. This is an example of

A. incentives.

B. trade-offs.

C. opportunity cost.

D. macroeconomics.

Expert Solution

A. incentives

Explanation: In the given scenario, an incentive is given to the consumer to buy more in order to save their shipping expenses.

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