If the demand function for apples is P = 1 - Q, how much consumer surplus does the consumer gain when the price of the apples equals 5?
A. 25
B. 5
C. 12.5
D. 20
Answer: C
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Those goods produced by the economic system that are used as inputs in the production of future goods and services are known as capital.
Answer the following statement true (T) or false (F)
Which of the following will most likely cause a shift in the consumption function?
A. A change in consumer confidence B. A change in national output C. A change in real GDP D. A change in disposable income
When $1 million is deposited at a bank, the required reserve ratio is 20 percent, and the bank chooses not to hold any excess reserves but makes loans instead, then, in the bank's final balance sheet
A) the assets at the bank increase by $800,000. B) the liabilities of the bank increase by $1,000,000. C) the liabilities of the bank increase by $800,000. D) reserves increase by $160,000.
The demand curve shows the relationship between
A. income and quantity demanded. B. consumer tastes and quantity demanded. C. price and production costs. D. price and quantity demanded.