Use the Following to Answer Questions: Table: Willingness to Pay

question 132

Multiple Choice

Use the following to answer questions: Table: Willingness to Pay $$\begin{array} { l c c } \hline { \text { Maximum Willingness to Pay for Good A and Good B } } \\\hline & \text { John } & \text { Mary } \\\hline \text { Good A } & \$ 90 & \$ 35 \\\text { Good B } & \$ 30 & \$ 70 \\\hline\end{array}$$
-(Table: Willingness to Pay) Refer to the table. If the firm were to engage in bundling, its profits would increase by how much relative to setting individual prices for each good?

• A) $65
• B) $225
• C) $50
• D) $210

---

Definitions:

System II Strategies

Cognitive processes associated with analytical thinking that are deliberate, controlled, and typically require conscious effort, as opposed to intuitive or automatic System I processes.

Atypical

Atypical refers to something that is not typical or usual; in medical or psychological contexts, it often describes conditions, behaviors, or responses that deviate from the norm.

Prison Guard

An individual responsible for the supervision, safety, and security of prisoners in a jail or prison.

Frequency Judgments

refer to the assessments or estimations made by individuals about how often an event occurs or how common a particular item or situation is.