Two rental car companies have different charges. Company A is shown in the graph below and Company B is shown in the table below. Both companiescharge a service fee as well as a daily rate.Rental Car Company ARental Car Company BDays359 11Rental Cost120 190 330 400DeysRental Cost Which statement about their pricing plans is true?Company A charges $25 a day more than Company B.B Company A has a service fee that is $25 more than what Company B has.C Company A has a service fee that is $20 more than what Company B has.D Company A charges $15 a day less than Company B.

Company B rental fee=Change in charge Change in number of days Service fee of company B=Total…

Which statement about their pricing plans is true? A Company A charges $25 a day more than Company B. B Company A has a service fee that is $25 more than what Company B has. Company A has a service fee that is $20 more than what Company B has. D Company A charges $15 a day less than Company B.

Which statement about their pricing plans is true? A Company A charges $25 a day more than Company B. B Company A has a service fee that is $25 more than what Company B has. Company A has a service fee that is $20 more than what Company B has. D Company A charges $15 a day less than Company B.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter6: Elasticities

Section: Chapter Questions

Problem 12P

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Question

Two rental car companies have different charges. Company A is shown in the graph below and Company B is shown in the table below. Both companies
charge a service fee as well as a daily rate.
Rental Car Company A
Rental Car Company B
Days
3
59 11
Rental Cost
120 190 330 400
Deys
Rental Cost

Which statement about their pricing plans is true?
Company A charges $25 a day more than Company B.
B Company A has a service fee that is $25 more than what Company B has.
C Company A has a service fee that is $20 more than what Company B has.
D Company A charges $15 a day less than Company B.

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