Ch12Q2

Your store selis an item desired by a consumer. The consumer is using an optimal search strategy, the accompanying graph shows the a. What is the consumer's reservation price? b. If your price is $3 and the consumer visits your store, will she purchase the item or continue to search? She will continue to search. She will purchase the irem. c. Suppose the consumer's cost of each seorch rises to $16. What is the highest price you can charge and still sell the item to the consumer if she vists your store