-Sarah and Marisa Are the Only Two Baby-Sitters Available in a Small

question 1

Multiple Choice

-Sarah and Marisa are the only two baby-sitters available in a small town.Figure 11-14 indicates different combinations of hourly rates charged by the two teenagers,along with their weekly net earnings.If Sarah and Marisa do not collude,then

• A)in equilibrium,both will charge $4 per hour
• B)in equilibrium,both will charge $5 per hour
• C)in equilibrium,Sarah will charge $5 per hour;Marisa will charge $4 per hour
• D)in equilibrium,Sarah will charge $4 per hour;Marisa will charge $5 per hour
• E)there is no predictable equilibrium

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Definitions:

Price Of Cup

The amount of money required to purchase a cup, which can vary based on the cup's material, design, and the location of purchase.

Consumption Bundle

A combination of different goods and services that an individual or a household consumes over a certain period.

Income On Food

The portion of an individual's or household's income that is spent on food and food-related expenses.

Shelter

A structure that provides cover or protection from weather, danger, or discomfort, often used as a term for housing or living spaces.