The Accompanying Table Summarizes Information About Each Potential Passenger's Age

question 63

Multiple Choice

The accompanying table summarizes information about each potential passenger's age and his or her maximum willingness to pay for a solo skydiving experience from SkyMasters, Inc. The aircraft has room for eight people, including the pilot and skydiving instructor. The marginal cost of adding each additional passenger is $100. SkyMasters, Inc. holds significant market power for its region. Use this information to answer the questions. $\begin{array}{lll}&\text { Maximum }\\\text { Customer }&\text { Willingness to Pay }&\text { Age }\\\text { Harold } & \$ 400 & 50 \\\text { Jay } & \$ 300 & 45 \\\text { Leslie } & \$ 350 & 42 \\\text { Kristen } & \$ 250 & 21 \\\text { Ivana } & \$ 200 & 20 \\\text { Matt } & \$ 150 & 18\end{array}$
-SkyMasters, Inc. has decided to charge two different prices, a high price and a low price, based on age. Which age group would pay the higher price?

• A) Customers over the age of 50 would pay more.
• B) Customers age 40 and over would pay more.
• C) Customers age 21 and over would pay more.
• D) Customers under the age of 21 would pay more.
• E) Customers over the age of 16 would pay more.

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Definitions:

Adult

A person who has reached the age of majority as legally defined, typically characterized by physical growth completion, sexual maturity, and legal responsibility for their actions.

Hypernatremia

A medical condition characterized by an abnormally high concentration of sodium in the blood.

Serum Sodium

The concentration of sodium ions present in the serum component of blood, important for maintaining fluid balance and nerve and muscle function.

Diastolic Blood Pressure

The pressure in the arteries when the heart rests between beats, indicating the minimum blood pressure.