Question: Consider a high school student who is given $3 every school day by her parents as lunch money. The student works a part time job

Consider a high school student who is given $3 every school day by her parents as "lunch money." The student works a part time job after school, earning a small amount of "spending cash." In addition to her lunch money, the student spends $5 from her own earnings each week on lunch. Suppose her parents reduced her lunch money by $2 per day but that she simultaneously receives a $10-per-week raise at her job, requiring no extra effort on her part. What would the rational choice model suggest should happen to her spending on lunch? Alternatively, what does the mental accounting framework predict?

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