Morgan lives in San Francisco and likes to dine out. Morgan has noticed that prices at restaurants near popular tourist destinations in the city tend to be higher than at restaurants of the same quality in other neighborhoods. One reason for this is that:
A. tourists don't worry about money while on vacation.
B. search costs are higher for people who are unfamiliar with the area.
C. residents don't like to eat in restaurants frequented by tourists.
D. restaurant meals are a small fraction of the total cost of a vacation.
Answer: B
Economics
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