The Accompanying Table Summarizes Information About Each Potential Passenger's Age

question 63

Multiple Choice

The accompanying table summarizes information about each potential passenger's age and his or her maximum willingness to pay for a solo skydiving experience from SkyMasters, Inc. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. SkyMasters, Inc. holds significant market power for its region. Use this information to answer the questions. $\begin{array}{lll}&\text { Maximum }\\\text { Customer }&\text { Willingness to Pay }&\text { Age }\\\text { Harold } & \$ 400 & 50 \\\text { Jay } & \$ 300 & 45 \\\text { Leslie } & \$ 350 & 42 \\\text { Kristen } & \$ 250 & 21 \\\text { Ivana } & \$ 200 & 20 \\\text { Matt } & \$ 150 & 18\end{array}$
-SkyMasters, Inc. has decided to charge two different prices, a high price and a low price, based on age. Which age group would pay the higher price?

• A) Customers over the age of 50 would pay more.
• B) Customers age 40 and over would pay more.
• C) Customers age 21 and over would pay more.
• D) Customers under the age of 21 would pay more.
• E) Customers over the age of 16 would pay more.

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Definitions:

Psychodynamic

A psychological perspective that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Clinical

Pertains to the observation, diagnosis, and treatment of patients within a healthcare setting.

Empirically Tested

The process of evaluating hypotheses or theories through direct observation and experimentation to establish their validity.

Scientific Attitude

A mindset that emphasizes curiosity, skepticism, and openness to evidence and new information in the pursuit of understanding.