Refer to the Accompanying Table $\text { Maximum Willingress to Pay (NWP) for Ice Cream }$

question 36

Multiple Choice

Refer to the accompanying table. Imagine there are two cities (City A and City R) and you are the only provider of ice cream sandwiches for both. Use this information to answer the questions. $\text { Maximum Willingress to Pay (NWP) for Ice Cream }$
$\text { Sandwiches }$
$\begin{array}{llll}\text { City A } & \text { MWP } & \text { City R } & \text { MWP } \\\text { Aladdin } & \$ 16 & \text { Richard } & \$ 15 \\\text { Alan } & \$ 12 & \text { Ramon } & \$ 14 \\\text { Alvin } & \$ 10 & \text { Robert } & \$ 13 \\\text { Albert } & \$ 8 & \text { Roger } & \$ 11 \\\text { Albus } & \$ 6 & \text { Reginald } & \$ 4\end{array}$
$\text { Unit cost is } \$ 7 \text { for each ice cream sandwich }$
-Because both cities are located quite far from each other, you can charge different prices in each, without fear of reselling. What prices would you charge in each city?

• A) $8 in City A and $11 in City R
• B) $12 in City A and $13 in City R
• C) $7 in City A and $7 in City R
• D) $10 in City A and $11 in City R
• E) $4 in City A and $6 in City R

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Definitions:

Gains

Increases or improvements, often referenced in contexts such as productivity, knowledge, or physical attributes.

Hindsight Bias

The inclination to see events as having been predictable after they have already occurred, often referred to as the "I-knew-it-all-along" phenomenon.

Inevitable

Something that is certain to happen and cannot be prevented or avoided.

Illusory Correlations

The perception of a relationship between two variables when none actually exists.