The difference between the maximum amount a person would be willing to pay for a good and the amount that a person actually pays is called
a. marginal utility
b. equalization principle
c. auction pricing
d. consumer surplus
e. demand responsiveness
D
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The economy's marginal social benefit curve for a public good is calculated by adding the
A) marginal cost of all the suppliers at each quantity. B) quantities supplied by all the suppliers at each price. C) quantities demanded by all the individuals at each price. D) marginal benefits of all the individuals at each quantity.
Figure 4-25
Refer to . The benefit to the government is
a.
measured by tax revenue and is represented by area A + B.
b.
measured by tax revenue and is represented by area B + D.
c.
measured by the net gain in total surplus and is represented by area B + D.
d.
measured by the net gain in total surplus and is represented by area D + E.
Why is a discounted airline fare a price discrimination that can be offered?
(A) Because people who fly on business want the price discounts but do not qualify. (B) Because senior citizens qualify for discounts on certain types of flights but not on others. (C) Because people do not necessarily want to go where the discounts will allow them to go. (D) Because vacationers are willing to put up with the restrictions that the airlines impose.
The business cycle is actually a continuous series of different
What will be an ideal response?