The market demand curve for a popular teen magazine is given by Q = 80 - 10P where P is the magazine price in dollars per issue and Q is the weekly magazine circulation in units of 10,000
If the circulation is 400,000 per week at the current price, what is the consumer surplus for a teen reader with maximum willingness to pay of $3 per issue? A) $2.00
B) $1.00
C) Zero
D) -$1.00
D
You might also like to view...
Sarah is a high school graduate and James is a college graduate. Which of the following statements is true?
A) Sara is likely to have more human capital than James. B) James is likely to have more human capital than Sara. C) Both Sara and James are likely to earn the same wage in the labor market. D) Both Sara and James are likely to have the same amount of human capital.
If both the supply and demand curves shift to the left, then we can conclude that there will be
a. an increase in the equilibrium quantity sold. b. a decrease in the equilibrium quantity sold. c. an increase in the equilibrium price. d. a decrease in the equilibrium price.
Government intervention in the market
A. Does not involve an opportunity cost if market outcomes are improved. B. Always involves an opportunity cost. C. Never involves an opportunity cost because only market activities result in other goods and services being given up. D. Results in the free-rider dilemma.
Total cost is
a. the sum of variable cost and fixed cost. b. average variable cost times quantity. c. the sum of average fixed cost and marginal cost. d. the sum of fixed cost and average variable cost.