To determine which option is likely to raise Olivia's reservation wage, we need to consider how each situation impacts her opportunity costs and her financial needs.
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Olivia takes on more debt and is struggling to make payments on time. - This would likely increase her need for higher wages to meet her financial obligations, potentially raising her reservation wage.
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Olivia learns that the job is more challenging than she initially thought. - If she perceives the job as more difficult, she may feel she deserves a higher wage for the increased effort required, possibly raising her reservation wage.
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Olivia has spent all of her savings and is struggling to pay rent. - Like the first option, this situation increases her need for a higher income to cover essential expenses, likely raising her reservation wage.
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Olivia learns that employees are paid bonuses at the end of every month. - This may make the job more attractive and could potentially lower her reservation wage, as she may perceive extra compensation as sufficient motivation even if the base wage is lower.
Given this analysis, the options that most clearly raise Olivia's reservation wage are the first, third, and possibly the second one. However, the most direct influence seems to come from the first and third options related to her financial struggles.
Ultimately, the situations about taking on more debt and struggling with rent (first and third options) would likely lead to a higher reservation wage due to increased financial pressure.
In conclusion, either "Olivia takes on more debt and is struggling to make payments on time" or "Olivia has spent all of her savings and is struggling to pay rent" would likely lead to a significant increase in her reservation wage. Since only one answer can be selected, either could be valid depending on context, but the one about struggling to pay rent likely indicates the most immediate financial pressure.
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