Suppose apartments are in four locations: location a, location b, location c, and location d. location a is in thecity, where your job is. location b is 10 minutes farther from your job than location a. location c is 10 minutes farther from your job than location b, and location d is 10 minutes farther than location c. in turn, similar apartments in location b rent for$175 less per month than apartments in location a, apartments in location c rent for $175 less than in location b, and apartments in location d rent for $175 less than in location c. suppose the value of your time is $24 per hour and you work 21 days permonth, with each day requiring a round-trip commute from your apartment to work. for simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent an apartment. you should rent an apartment in location d .suppose you currently rent an apartment in location b . by moving to optimize, you change your net benefit by $(enter your response as an integer.

The correct answer is $14.

Explanation:

Location C is at 10 minutes distance from location B and location D is at 10 minutes distance from location C.

This means that location D is at 10 + 10= 20 minutes distance from location B.

A round trip will take 40 minutes

If I go to work for 21 days, the time taken in commuting will be

=

= 840 minutes

or We can say it will take

=

= 14 hours

The value of an hour is given as $24.

So the value of 14 hours will be

=

= $336

Apartment in location D costs $175 less than the apartment in location C and apartment in location C costs $175 less than the apartment in location B.

So, the apartment in location D costs $175 + $175 = $350 less than the apartment in location B.

The net benefit of moving from location B to D is

= savings in rent - additional cost of commuting

= $350 - $336

= $14

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.