Suppose that Anne buys three pairs of designer shoes at $200 a pair. If the price equals the amount Anne is willing to pay for the third pair, then:
A. she earned no consumer surplus.
B. she might have earned some consumer surplus on the first two pairs of shoes.
C. she would have earned consumer surplus if she bought one more pair of shoes.
D. she would have earned more consumer surplus if she bought one fewer pair of shoes.
Answer: B
You might also like to view...
According to new classical economists,
a. deficits should have a large and negative impact on output. b. deficits should have no discernable impact on output. c. deficits will have no impact on private consumption. d. growth in the 1990s was driven by falls in the deficit. e. None of the above
In a perfectly competitive market equilibrium,
a. each firm's marginal cost is equal to the market price b. each consumer's marginal utility is equal to the market price c. each firm's marginal cost is equal to each consumer's marginal utility d. price equals minimum marginal cost e. price equals minimum average total cost
Community Advisory Council (CAC).
What will be an ideal response?
A Pigovian tax is intended to:
A. counter the effect of a negative externality. B. decrease total surplus in a market. C. decrease efficiency in a market. D. All of these statements are true.