You are in the line to go see a movie when you suddenly realized you have lost your ticket. It would cost you $10 to buy a new ticket. Now you are deciding whether to buy a new ticket or not. Assuming you have enough money to buy a new ticket, you would always buy the new ticket as long as:

Question

Quizplus · Accepted Answer

The reservation price is the maximum amount you are willing to pay for a good or service. In this case, if your reservation price for the movie ticket is equal to or greater than $10, it means that you value the movie ticket as much as or more than $10. Therefore, it makes sense to buy a new ticket for $10 since you would still receive as much value as you are paying for it. Options B, C, and D are not applicable since they do not follow this logic.

You Are in the Line to Go See a Movie