Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a theater ticket. If the price of one ticket falls from $25 to $10
A) consumer surplus decreases from $24 to $12. B) consumer surplus increases from $0 to $31.
C) only three tickets will be sold. D) everyone will buy a ticket.
B
You might also like to view...
If a used-car dealer suffers economic losses, then
A) as a group, its customers were necessarily made worse off. B) as a group, its competitors necessarily enjoyed economic profits. C) it must pass its losses onto its future customers. D) none of the above is true.
Which of the following is TRUE?
a) MPS = MPC b) MPS + MPC = 1 c) MPS + MPC = 0 d) MPS - MPC = 1
The amount by which a change in government purchases of goods and services is multiplied to determine the change in aggregate demand that it generates is the ...
What will be an ideal response?
Lowering the reserve ratio:
A. Increases the total reserves in the banking system B. Also reduces the discount rate C. Turns required reserves into excess reserves D. Reduces the amount of excess reserves the banks keep