The price of a cowboy hat is $100. Willie is willing to pay $130, Waylon is willing to pay $100, and Merle is willing to pay $85. All of the following statements are true EXCEPT:
A) Merle's consumer surplus is $15.
B) The sum of consumer surplus will be $30.
C) Waylon's consumer surplus is $0.
D) Only Willie and Waylon will purchase the cowboy hat.
E) Willie's consumer surplus is $30.
A
You might also like to view...
Which of the following is not counted as part of M1?
a. Coins. b. Federal Reserve notes or " paper money." c. Passbook savings deposits. d. Checkable deposits.
Macroeconomics is best described as a study of ____ and microeconomics as a study of ____.
A. financial markets, specific markets B. nations, individuals C. the stars, solar system D. abstract, concrete
Which of the following activities would be included in GDP?
A. Your roommate pays you $40 to clean the house. B. Your parents send you $40 to hire a house cleaner, and you clean the house and keep the $40 yourself. C. You hire a cleaning service at $40 to clean your house. D. All of these would be included in GDP, since there was a monetary exchange.
Imagine that Odyssey National is a brand new bank, and that its required reserve ratio is 10 percent. If it accepts a $1,000 deposit, then its excess reserve balance will be:
A. $0. B. $90. C. $100. D. $900.