The price of a drink at the juice bar is $7. Melody Miller buys six carrot juices over the course of the afternoon.
A. She is enjoying a consumer surplus.
B. She is not enjoying a consumer surplus.
C. There is no way to determine whether or not she is enjoying a consumer surplus.
A. She is enjoying a consumer surplus.
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Substitution of one commodity for another depends on all of the following factors, EXCEPT:
a. prices of the goods available to the consumers. b. tastes and preferences of the buyers. c. the information buyers possess. d. market protocols.
When a government imposes price controls, the result is that
A) the rationing function of prices is not allowed to function freely. B) the price system operates more efficiently. C) all trades are as mutually beneficial to each party as possible. D) scarcity usually disappears.
If a firm shuts down in the short run
A. it will lose its operating costs. B. it will incur only its explicit costs. C. its losses will be equal to zero. D. it will incur its fixed costs.
Refer to the diagram for a private closed economy. At the equilibrium level of GDP, investment and saving are both:
A. $50.
B. $100.
C. $20.
D. $40.