Solved

Rebecca and Leah Are Roommates

Question 70

Multiple Choice

Rebecca and Leah are roommates.Rebecca likes to study with the music playing loudly and Leah needs quiet when she studies.Rebecca would be willing to pay $5 a night to hear music while Leah would be willing to pay $10 a night for the quiet.In this situation


A) Leah should pay Rebecca $7.50 a night to not listen to music,because that would be a Pareto improvement
B) Rebecca should stop listening to music because that would be a Pareto improvement
C) There is no action that would create a Pareto improvement
D) Rebecca should pay Leah $7.50 a night to listen to music,because that would be a Pareto improvement
E) Leah should pay Rebecca $4.50 a night to not listen to music,because that would be a Pareto improvement

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents