Business, 21.03.2020 02:13 Nathaliasmiles

The lease on Allison's apartment will expire next month, and she wants to move closer to campus. There are two apartments that she likes. Both are close to campus and in her price range. The first one is next door to a garage where local bands often practice late at night. The second one is next door to a donut shop that opens at 5 a. m.
1.If you like to stay up late and love listening to all kinds of music, you will view the bands practicing as a(n)
a- price floor
b-private good
c. external cost
d. willingness to pay
e. external benefit
2. If you are a morning person and love the smell of donuts, you will view the donut shop as a(n)
a. private good
b. external cost
c. willingness to pay
d. external benefit
e. Price ceiling
3. If your roommate hates loud music and the smell of donuts make her sick, she will reject both apartments due to what she sees as a high
a. asymmetric information
b. Price floor
c. Private good
d. external cost
e. external benefit

Answers: 1

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The lease on Allison's apartment will expire next month, and she wants to move closer to campus. The...

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