Refer to the Accompanying Table to Answer the Questions $\text { Willingness to Pay for Bottled Water }$

question 95

Multiple Choice

Refer to the accompanying table to answer the questions. $\text { Willingness to Pay for Bottled Water }$
$\begin{array}{lccc}\text { Quantity } & \text { City A } & \text { City B } & \text { City C } \\1 & \$ 20 & \$ 15 & \$ 14 \\2 & \$ 17 & \$ 13 & \$ 13 \\3 & \$ 14 & \$ 11 & \$ 12 \\4 & \$ 11 & \$ 9 & \$ 11 \\5 & \$ 8 & \$ 7 & \$ 10\end{array}$
$\text { Marginal Cost }=\$ 0$
-You are the only provider of bottled water for three cities. Because you have access to a natural spring, the marginal cost to produce an additional bottle is $0. If you could price-discriminate by charging a different price in each city, how many more people would have access to bottled water compared to when you charge only one price for all three cities?

• A) 1 more person
• B) 2 more people
• C) 3 more people
• D) 4 more people
• E) exactly the same number of people

---

Definitions:

Rejection Region

In hypothesis testing, the range of values for which the null hypothesis is rejected, indicating that the observed data is highly unlikely under the null hypothesis.

Wilcoxon Rank Sum Test

A nonparametric test that compares two independent groups to assess if their populations have the same distribution.

Wilcoxon Rank Sum Test

This is a method in statistics, not based on parameter assumptions, used for comparing the mean ranks of two distinct samples to see if they differ.

Ordinal

A type of categorical data where the order of the values is significant, but the difference between successive values is not necessarily constant.