Question

A bakery sells individual cupcakes for $3, and boxes of 12 cupcakes for $30. A customer enters the bakery.This customer purchases 15 cupcakes—1 box for $30, and 3 individual cupcakes for $3 each. Which of the following must be true of the customer’s willingness to pay?
1) The customer would not have purchased the cupcakes if the price for all 15 had been $45.
2) The customer’s willingness to pay for the 15 cupcakes is $39.
3) The customer’s willingness to pay for 12 cupcakes is $30.
4) The customer’s willingness to pay for 16 cupcakes is less than $42.

Answer 1

Answer:

2) The customer’s willingness to pay for the 15 cupcakes is $39.

3) The customer’s willingness to pay for 12 cupcakes is $30.

Explanation:

The willingness to pay for a good is the highest amount a consumer is willing to pay for a good or service.

The price of 15 cupcakes purchased = $30 + $9 = $39