Charles wants to buy a pound of salted tuna. He is willing to pay up to $3 per pound for his favorite brand. The local store sells this brand of tuna for $2 . If Charles purchases a pound of tuna, then his consumer surplus is _____
a. $1
b. $1.50
c. $0.50
d. $2
a
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When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is
A) a U.S. import and an Italian export. B) both a U.S. and an Italian import. C) a U.S. export and an Italian import. D) neither an export nor an import for either the United States or Italy.
Suppose that the price of eggs increases from 75 cents to $1.00 per dozen and as a result a typical farmer experiences a decrease in egg sales from 300 to 200 dozen per week
Using the method of average values, the absolute price elasticity of demand is A) 1.4. B) 0.8. C) 3.0. D) 1.75.
Using the concept of elasticity, show that a drug enforcement policy aimed at getting rid of heroin suppliers may not be very effective in reducing heroin consumption
The most common form of trading goods for goods is
a. bilateral trade. b. government commodity distribution. c. status-based trades. d. barter. e. payments in kind.