Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $36
A) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket.
B) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.
C) Violet and Walter will each buy two tickets.
D) Walter will receive $4 of consumer surplus from buying one ticket.
D
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Suppose a person calculates her permanent income by adaptive expectations. Last year's permanent income was 38,000, this year's actual income is 41,000, j = 0.30, and k = 0.86. What is her consumption expenditure this year?
A) 30,422 B) 12,174 C) 40,226 D) 38,774 E) 33,454
Human capital represents: a. the equipment that labor uses on-the-job to improve labor productivity
b. the ratio of capital to labor. c. the education, skill, and training embodied in workers. d. the technology developed by humans that is embodied in equipment. e. the social institutions created by people which promote the accumulation of equipment for production.
On average each year, about 7 percent of all firms in the United States are new and 1 percent go out of business. According to the text, luck may play a role. Which of the following reasons for failure might be attributable to luck?
A) An individual undertakes a very risky venture so that his product is first to market. B) An executive fails to undertake an investment that would have yielded great success. C) An executive focuses on the incorrect objective. D) An executive undertakes an investment just prior to a major natural catastrophe that destroys the firm's assets. E) An executive fails to perceive what customers really want.
If the economy is in equilibrium and suddenly the level of planned investment increases by $2 billion, national income will increase by
a. $2 billion and stabilize at that level. b. less than $2 billion because of MPS. c. more than $2 billion because of MPC. d. less than $2 billion because of MPC.