Suppose that the market price for ... Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is: A. at least $5.00 B. greater than $4.50 but no more than $5.00 C. $5.00 D. $4.50

Question

Business

Rayne Anthony

4 February, 05:31

Suppose that the market price for ... Suppose that the market price for hot dogs sold by street vendors has just risen from $4.50 to $5.00, and that in response Curly has now begun operating a hot dog cart. We can assume that Curly's reservation price for hot dogs is: A. at least $5.00 B. greater than $4.50 but no more than $5.00 C. $5.00 D. $4.50

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Nugget · Answer 1

B. greater than $4.50 but no more than $5.00

Explanation:

From the given statement in the question it can be observed that the Curly was not operating a hot dog cart when the price of hot dogs was $ 4.50.

But curly started operating a hot dog cart when the price risen to $5.

Therefore,

Curly's reservation price will be in between $4.50 to $5.

Reservation price is the minimum price which is acceptable to the producer, on the producer side.