A couple is considering moving to Tampa from Chicago. The cost of moving for Crystal is $300 while the cost of moving for Amelia is $600. Crystal earns $500 in Chicago and $550 in Tampa. Amelia earns $200 in Chicago and $1000 in Tampa. Will they move as a couple?
A. Yes, because the joint cost of moving ($900) exceeds what they could earn in Chicago ($700).
B. No, because neither person would choose to move to Tampa on their own.
C. Yes, because they receive a net gain of $150 by moving to Tampa.
D. No, because they would lose $50 by moving to Tampa when all benefits and costs are considered.
E. Yes, because they would earn $1,550 in Tampa but only $700 in Chicago.
Answer: D
Economics