Suppose a Roll of Paper Towels Costs $6 at Sam's

question 105

Multiple Choice

Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?

• A)The consumer is indifferent as to where they buy the paper towels.
• B)It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
• C)It is more expensive for the consumer to buy the paper towels at Big Supplies.
• D)It is cheaper for the consumer to buy the paper towels at Big Supplies.

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