Thu Nov 11 66% AA a ezto.mheducation.com C + Ived] Pelican Point Financial Gro... Homework: The Economics of Infor... x Question 3 - Homework: The Econo... Homework: The Economics of ... i Saved Help Save & Exit Submit Check my work 3 Your store sells an item desired by a consumer. The consumer is using an optimal search strategy; the accompanying graph shows the consumer's expected benefits and costs of searching for a lower price. ints 30 28 26 24 EB 22 eBook 20 18 16 Expected benefits and costs eferences ONAMOOND 3 5 6 Price 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 purchase the item. She will continue to search. c. Suppose the consumer's cost of each search rises to $16. What is the highest price you can charge and still sell the item to the consumer if she visits your store?