Sydney Sells Snow Globes from a Cart

question 42

Multiple Choice

Sydney sells snow globes from a cart. When the cart is located on the sidewalk near a discount store, Sydney's customers have reservation prices of $5. When Sydney's cart is located on a sidewalk in an upscale mall, wealthier customers with reservation prices of $10 buy snow globes. Assume that Sydney can sell the same volume at either location and that marginal and average costs are $3 per globe at both locations. Information about the reservation prices of Sydney's customers increases total surplus by:

• A)allowing consumers with different incomes to acquire things they value.
• B)helping to ensure that snow globes go to consumers who like them most.
• C)encouraging sellers to locate in underserved areas.
• D)helping to ensure that snow globes go to consumers with the greatest willingness to pay.

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Definitions:

Global

Pertaining to or involving the entire world; worldwide in scope or application.

Diverse

Characterized by variety or differences, often used to describe inclusive or varied groups and ideas.

Workforce

The collective group of individuals engaged in work within an organization or the labor market at large.

Nonverbal Signals

Communication methods not involving words, such as posture, tone of voice, and facial expressions, that convey meaning.