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:
Verified
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