Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. The total consumer surplus for Lauren and Katy taken together equaled
A) $15.
B) $10.
C) $40.
D) $20.
E) $50.
B
You might also like to view...
Use the figure below to answer the following question.
At equilibrium, producer surplus is
A. 300. B. 150. C. 200. D. 400.
When a production possibilities frontier is bowed outward, as more of one good is produced, its opportunity cost
A) increases. B) decreases. C) remains constant. D) might increase, decrease, or remain constant depending on how much people value the additional units of the good. E) cannot be predicted.
There are two closely related crops, X and Y, with the following demand functions QX = 180 - 2PX + PY and QY = 150 + PX - PY where QX is the quantity of X, PX is the price of X, QY is the quantity of Y, and PY is the price of Y
These two crops are grown in two widely separated countries so there is no interrelationship between the supply curves. The short-run perfectly inelastic supply for X is 150 while the short-run perfectly inelastic supply for Y is 100. In equilibrium, the prices are A) PX = 80, PY = 130 B) PX = 40, PY = 65 C) PX = 60, PY = 120 D) PX = 30, PY = 80
A lump-sum tax per unit on imports is known as
a. a specific tariff b. an effective tariff c. a specific quota d. an effective quota e. an ad valorem quota