At $30 each, Jack will buy 1 Blu-ray and at $25, he will purchase 2 . If the price is $20, Jack's consumer surplus is:
a. $10.
b. $15.
c. $20.
d. $25.
b
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A monopoly is a firm that produces a good or service for which no close substitute exists
Indicate whether the statement is true or false
The rate at which a consumer must give up y to get one more x is equal to
A) -Px/Py. B) -Py/Px. C) -MUx/MUy. D) MUy/MUx.
Why do free trade proponents dislike rules of origin in trade agreements?
A) It decreases the amount of international trade in the world. B) It increases the amount of international trade in the world. C) It decreases incentives for trade diversion. D) It increases incentives for trade deflection.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.