Economics 13th Edition by James Gwartney, Richard Stroup, Russell Sobel, David Macpherson

Exercise 1

A bus ticket between two cities costs $150 and the trip will take 25 hours, whereas an airplane ticket costs $450 and takes five hours. Kathy values her time at $12 per hour, and Rachel values her time at $18 per hour. Will Kathy take the bus or the plane? Which will Rachel take? Explain.