Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80 . Katie's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80 . Which of the following statements is correct?

a. For the three individuals together, consumer surplus amounts to $35.
b. Having bought the cell phone, Kristen is better off than she would have been had she not bought it.
c. Had the price of the cell phone been $95 rather than $80, Katie and Kendra definitely would have been buyers and Kristen definitely would not have been a buyer.
d. The fact that all three individuals paid $80 for the same type of cell phone indicates that each one placed the same value on that cell phone.


a

Economics

You might also like to view...

Along a curved line, the slope at the maximum

A) is greater than zero. B) is zero. C) is less than zero. D) may be greater than, less than, or equal to zero.

Economics

If the nominal interest rate is 6% and the inflation rate is 9%, then the real interest rate is

A) -3%. B) 3%. C) 6.67%. D) 15%.

Economics

Sharecropping after the Civil War (1861–1865) was the land tenure of black and white non-landowning farmers in about equal proportions

Indicate whether the statement is true or false

Economics

change in demand

What will be an ideal response?

Economics