Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.10 per message?
A. $5
B. $10
C. $20
D. $50
B. $10
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Which of the following statements is true of Malthus's theory?
A) Malthus suggested that fertility level of the population will remain constant over time. B) Malthus suggested that the life expectancy of the population will remain constant over time. C) Malthus suggested that in the long run, income levels will grow exponentially. D) Malthus suggested that in the long run, income levels will stay at subsistence.
List factors that increase the price elasticity of supply
What will be an ideal response?
A price-discriminating monopolist will tend to charge a higher price to senior citizens if it believes that senior citizens: a. have a lower willingness to pay than other demanders. b. have a greater willingness to pay than other demanders. c. have very elastic demand curves
d. have horizontal demand curves.
In January, 2,500 quarts of ice cream are sold in Boston at $2 per quart. In February, 3,000 quarts are sold at $2.50 a quart. This change in the price and quantity sold of ice cream may have been caused by: a. a reduction in wages in the Boston area
b. the introduction of labor-saving, automated ice cream packing machinery. c. the release of a medical study showing that ice cream consumption improves mental health. d. the decision by Boston ice cream sellers to eliminate discount coupons.