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. Moe's reservation price for a slice of pizza must be:
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

Moe did not purchase a slice of pizza when the price was $2. This means that $2 was above his reservation price. When the price fell to $1.75, Moe purchased a slice every day for lunch. This suggests that $1.75 was Moe's reservation price for a slice of pizza. Therefore, Moe's reservation price for a slice of pizza is at least $1.75 but less than $2. The correct answer is B.

When a Slice of Pizza at the Student Union Sold