Ed thinks he looks good in tweed. Last week he saw a light-brown tweed sports coat at Dessen's Fine Clothing Store and thought that the $200 price tag was about as much as he was willing to pay. Lucky for him, he noticed an ad in the local paper that night that had attached a $20-off coupon for any purchase at Dessen's over $100 . Using the coupon, he bought the coat. He ended up with the coat
and a
a. producer surplus of $80
b. producer surplus of $20
c. consumer surplus of $120
d. consumer surplus of $80
e. consumer surplus of $20
E
You might also like to view...
In the classical model, the government needs to worry about total spending
a. True b. False
A recent study on enrollment at a liberal arts college concluded that demand elasticity is 0.91 . The administration is considering a tuition increase to help balance the budget. The revenue-maximizing decision is to
a. decrease tuition, which should boost enrollment enough to balance the budget. b. decrease tuition, which would bring in more revenue. c. leave tuition as is-an increase would not help balance the budget. d. increase tuition, which would bring in more revenue.
Additionally, the federal funds rate is
A. Very important for the Fed's monetary policy because individual borrowers pay this interest rate for mortgage loans B. Very important for the Fed's monetary policy because the Fed uses the federal funds rate as a monetary policy target since it can control the rate through open market operations C. Very important for the Fed's monetary policy because it is Administratively set by the Fed
Which of the following is FALSE regarding the general rule for hiring?
A. Virtually every optimizing rule in economics involves comparing marginal benefits with marginal cost. B. The firm hires workers up to the point at which the additional cost associated with hiring the last worker is equal to the additional revenue generated by that worker. C. The benefit from added workers is extra output and consequently more revenues. D. If any firm hired fewer workers over time, profits would definitely increase at that firm.