A television costs $100, but a new excise tax law imposes a $5 tax on the sale of the set. If Takeshi wants to buy a television, what would have to be his minimum willingness to pay?

a. between $100 and $105

b. $105

c. more than $105

d. $100

The correct answer is option (A).

Explanation:

According to the scenario, the given data are as follows:

Television cost = $100

Tax imposed = $5

So, we can calculate the minimum willingness to pay to buy television can be concluded by taking following observation:

Hence, the amount that should be pay to buy the television should be between $100 and $105.

answer; blank (1) hrm specialists,blank(2); line managers;