Question

Shelly purchases a leather purse for $400. One can infer that:

A. she paid too much.

B. her reservation price was at least $400.

C. her reservation price was exactly $400.

D. her reservation price was less than $400.

Answer 1

B. her reservation price was at least $400.

Step-by-step explanation:

Reservation price: It shows a limit on a price of purchase and selling of products and service rendering.

In the demand side, this price represents the higher price that the buyer is willing to pay to purchase the goods whereas, on the supply side, this price represents the lower price that the seller is willing to sell the goods.

In this question, the Shelly purchase a leather purse for $400 which means the minimum price would be $400

So, all other options except B are incorrect as option B is the most appropriate.