Sydney Sells Snow Globes from a Cart

Multiple Choice

Sydney sells snow globes from a cart. When the cart is located on the sidewalk near a discount store, Sydney's customers have reservation prices of $5. When Sydney's cart is located on a sidewalk in an upscale mall, wealthier customers with reservation prices of $10 buy snow globes. Assume that Sydney can sell the same volume at either location and that marginal and average costs are $3 per globe at both locations. Information about the reservation prices of Sydney's customers increases total surplus by:

A) allowing consumers with different incomes to acquire things they value.
B) helping to ensure that snow globes go to consumers who like them most.
C) encouraging sellers to locate in underserved areas.
D) helping to ensure that snow globes go to consumers with the greatest willingness to pay.