Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) only three tickets will be sold. B) everyone will buy a ticket.
C) consumer surplus decreases from $48 to $24. D) consumer surplus increases from $0 to $62.
D
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A public good
A) is a good that is usually consumed in public, such as a restaurant meal. B) is a good people can consume even if they do not pay for it. C) is a good produced by government. D) results in an efficient allocation of resources. E) is a good for which people are willing to pay a very high price.
The asset beta in the Capital Asset Pricing Model is a moderate number that measures
A) how sensitive the asset's return is to market movements. B) how sensitive the asset's discount rate is to changes in inflation. C) the risk premium on the stock market. D) the risk premium on an individual stock.
The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1. B) greater than 1. C) equal to 1. D) infinity.
There is a shortage in a market for a product when:
a. The increase in demand is greater than the increase in supply b. Quantity demanded is less than quantity supplied c. Quantity demanded is greater than quantity supplied d. The increase in supply is greater than the increase in demand