If demand for clean water is specified as P = 140 – 2Q, and the market price is $40, then consumer surplus at that price level is
a. $2500 b. $3000 c. $1600 d. $50
a. $2500
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Suppose you are given the following demand data for a product.PriceQuantity Demanded$1030940850760670The price elasticity of demand (based on the midpoint formula) when price decreases from $10 to $8 is
A. -1.60. B. -.63. C. -2.25. D. -1.16.
Relative to the prices that would be observed in an uncontrolled market, prices charged in a black market are generally
A. lower, since sellers have trouble locating buyers. B. lower, since buyers have trouble locating sellers. C. higher, since black market sellers compensate for the risk of being caught. D. higher, since most buyers enjoy goods more if they are illegal.
An article in the Wall Street Journal reports that “most cable TV operators are aware that cable is price sensitive, and there comes a point where people won’t pay the price.” Which demand curve in Figure 6-6 best illustrates this situation?
A. 1 B. 2 C. 3 D. 4
Which of these is a likely consequence of an increase in the price level in the economy, other things constant?
a. Firms demanding less imported raw materials b. Government demanding less military hardware c. Foreigners demanding greater amount of U.S. goods d. Households demanding more housing and furniture e. Firms demanding more capital resources