If the most someone is willing to pay for an airline ticket to Las Vegas is $300 and the market price of the ticket is $200, then this buyer will get consumer surplus of
A. $100.
B. $200.
C. $300.
D. $500.
Answer: A
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To avoid maturity mismatches, most financial intermediaries tend to
A) have assets whose maturities on average exceed the maturities of their liabilities. B) have assets whose maturities on average are less than the maturities of their liabilities. C) have assets whose maturities on average mirror the maturities of their liabilities. D) hold primarily real assets.
What does the production possibilities frontier imply about the resource allocation?
A. Only some points on the curve are efficient. B. All points on the curve are equally efficient. C. A point that lies below the curve is more efficient. D. A point that lies above the curve is readily achievable.
According to the classical? model, if an excess quantity of labor is supplied at a particular wage? level, full employment will be maintained because.
A. the equilibrium wage rate will rise to stimulate spending. B. wages will fall rapidly to permit businesses to continue hiring everyone who wants to work. C. the government will establish special work programs. D. the government will step in and stimulate spending.
If the fixed costs are relatively small, a relatively good approximation to the correct transfer price is
a. average costs b. average fixed costs c. average variable costs d. the market price