Minnie Gets 4 Tapes for Her Birthday, but They Are

Multiple Choice

Minnie gets 4 tapes for her birthday, but they are currently useless to her because she doesn't have a tape recorder and she cannot return them for a refund.Her utility function is U(x, y, z) = x + f(y) z⁵, where z is the number of tapes she has, y is the number of tape recorders she has, and x is the money she has to spend on other stuff.Let f(y) = 0 if y < 1 and f(y) = 7 otherwise.The price of tapes is $7.99.What is her reservation price for a tape recorder?

A) $20
B) $7
C) $24
D) $0
E) None of the above.