The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the maximum that Dana is willing to pay for the 8th gallon of ice cream is
A) $1.
B) $2.
C) $3.
D) $5.
C
You might also like to view...
Tom spends $20 a month on CDs and magazines. The price of a CD is $6 and the price of a magazine is $4. When Tom maximizes his utility, the marginal utility from CDs is ________ the marginal utility from newspapers
A) the same as B) 1/2 C) 20 times D) 1 1/2 times
Stating the dollar has strengthened against the yen means the dollar has depreciated
Indicate whether the statement is true or false
Under the rational expectations hypothesis, which of the following is the most likely short-run effect of a move to expansionary monetary policy?
a. a higher general level of prices but little or no change in real output b. a higher general level of prices and an expansion in real output c. no change in the general level of prices and a reduction in real output d. no change in either the general level of prices or real output
If the reserve ratio is 7.5 percent, the money multiplier is
a. 7.5. b. 10.3. c. 13.3. d. 11.3.