A Stairwell in a Certain Office Building Is Always Congested

question 160

Multiple Choice

A stairwell in a certain office building is always congested at 12:00 p.m. and 1:00 p.m. The congestion is so bad that people have been complaining to the building's owner. Which of the following methods would be the most efficient way of reducing congestion?

• A)Assign each person in the building a time when they are allowed to use the stairwell.
• B)Encourage people to voluntarily keep off the stairwell during peak times.
• C)Charge everyone who uses the stairwell when it is congested the same fee. People who value the use of the stairs the most will be the ones who use the stairwell at peak times.
• D)Hold a lottery to determine who wins the right to use the stairwell at peak times.

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Definitions:

Put Option

An agreement that allows the holder to sell a predetermined quantity of a particular asset at an agreed-upon price before a certain deadline, without being required to do so.

Exercise Price

The exact price at which an option's holder is allowed to purchase (for a call option) or sell (for a put option) the asset underlying the option.

Stock Price

The amount of money it would cost to purchase one share of a company; determined by supply and demand in the market.

Strike Price

The predetermined price at which the holder of an option can buy or sell the underlying asset.