The difference between the amount a consumer is willing to pay and the amount they actually must pay for a good is called the:
a. price elasticity of demand
b. substitution effect.
c. consumer surplus.
d. income elasticity of demand.
c
You might also like to view...
A baker can produce two products: cupcakes and pies. The table below is the baker's production possibilities schedule:Production Possibilities ScheduleProductABCDEFCupcakes01220365681Pies1086420If the baker uses all of its resources to produce only cupcakes, then its production combination will be
A. F. B. A. C. B. D. E.
The U.S. economy is experiencing rising output, rising employment, rising incomes and falling unemployment. These conditions best describe a business cycle ________
A) recession B) peak C) trend D) trough E) expansion
A decrease in the federal funds rate leads to..
What will be an ideal response?
Suppose that at prices of $1, $2, $3, $4, and $5 for product Z, the corresponding quantities supplied are 3, 4, 5, 6, and 7 units, respectively. Which of the following would increase the quantities supplied of Z to, say, 6, 8, 10, 12, and 14 units at
these prices? A. Improved technology for producing Z. B. An increase in the prices of the resources used to make Z. C. An increase in the excise tax on product Z. D. Increases in the incomes of the buyers of Z.