Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $2 and is $6 to Big Supplies, which of the following is true?

A) The consumer is indifferent as to where they buy the paper towels.
B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
C) It is cheaper for the consumer to buy the paper towels at Big Supplies.
D) It is more expensive for the consumer to buy the paper towels at Sam's Quick Stop.


B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.

Economics

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