When a slice of pizza at the student union sold for $2, Moe did not purchase any. When the price fell to $1.75, Moe purchased a slice each day for lunch. Thus, we can infer that Moe's reservation price for a slice of pizza is:
A)less than $1.75.
B)at least $1.75 but less than $2.
C)exactly $1.75.
D)exactly $2.00.

Question

Quizplus · Accepted Answer

A buyer will purchase an item if, and only if, its price is less than or equal to the buyer's reservation price. Since Moe buys a slice of pizza for $1.75, his reservation price must be at least $1.75, and since he does not buy a slice of pizza for $2.00, his reservation price must be less than $2.00.

When a Slice of Pizza at the Student Union Sold