While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75. She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:
A. marginal analysis.
B. basing decisions on total, rather than marginal, value.
C. an unintended consequence.
D. the fallacy of composition.
Answer: A
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