Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket is $50
A) no one will buy a ticket. B) Violet's consumer surplus is $2.
C) consumer surplus will be maximized. D) everyone will buy a ticket.
A
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You bake cookies. One day you double the time you spend, double the number of chocolate chips, flour, eggs, and all your other inputs, and bake twice as many cookies. Your cookie production function has
a. decreasing returns to scale. b. zero returns to scale. c. constant returns to scale. d. increasing returns to scale.
Which of the following make(s) insurance premiums higher than otherwise?
a. adverse selection and moral hazard b. adverse selection, but not moral hazard c. moral hazard, but not adverse selection d. neither adverse selection nor moral hazard
Ralph earns $40,000 per year. According to the income tax schedule, he must pay $4,000 in income taxes this year. If he had earned $50,000 his tax liability would have been $6,000. What marginal tax rate does Ralph face?
A. 10 percent B. 12 percent C. 20 percent D. 66 percent
An increase in the equilibrium quantity of a product will result
A) when the quantity of the product supplied exceeds the quantity demanded. B) when there is an increase in supply and an increase in demand for the product. C) when there is an increase in supply and a decrease in demand for the product. D) when there is an decrease in demand and a decrease in the cost of inputs used to make the product.