The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called:
A. Utility
B. Consumer Surplus
C. Consumer Demand
D. Market failure
B. Consumer Surplus
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The figure above shows the market for umbrellas in Sunville. Suppose the quantity of umbrellas currently traded in Sunville is 199 per day. If one more umbrella is sold, the total surplus in Sunville will
A) decrease by $26.67. B) increase by $26.67. C) increase by $50.00. D) not change.
Suppose there is no change in total revenue when the price changes. The demand curve for this good is:
a. perfectly elastic. b. perfectly inelastic. c. elastic. d. inelastic. e. unitary elastic.
If the underground economy is sizable, then GDP will:
a. understate the economy's performance. b. overstate the economy's performance. c. fluctuate unpredictably. d. accurately reflect this subterranean activity.
One explanation for the status quo bias is an aversion to loss
a. True b. False Indicate whether the statement is true or false