Recall the Application about Japanese and American consumers' willingness to pay for Internet service to answer the following question(s). In the United States, the average willingness to pay for Internet service is $85 per month, and the average monthly price of Internet service is $40 per month.According to the Application, the average consumer surplus in the United States from Internet service is about ________ percent of the price.
A. 47
B. 89
C. 113
D. 212
Answer: C
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Which of the following functions do prices perform?
a. prices serve as a rationing device for allocating scarce goods and services b. prices help determine incomes c. prices ration consumer demand d. All of these.
If the Fed sells a T-bill to an individual rather than to a commercial bank, how will this affect the money supply?
A. It will increase the money supply. B. It will increase the checking account balance of the individual. C. It will have no effect on the money supply. D. It will decrease the money supply.
When the price of bread increases by 3 percent, the quantity demanded of crackers increases by 2 percent. The cross elasticity of demand between crackers and bread is:
A. 0.67. B. 1.5. C. 2.5. D. 3.2.
How does ‘consumer sovereignty’ determine the types and quantities of the goods produced in an economy?
Please provide the best answer for the statement.