Jane is willing to pay $4 for the first cup of coffee a day, $2.50 for the second cup, and $1 for the third cup, after which she won't buy any coffee. The price of a cup of coffee is $2.40
Jane's consumer surplus from the coffee she buys is ________ per day. A) $1.60
B) $1.70
C) $4.80
D) $6.50
B
You might also like to view...
If the quantity of credit demanded in a market exceeds the quantity of credit supplied in the market:
A) the real rate of interest tends to rise. B) the unemployment rate tends to fall. C) the rate of inflation tends to rise. D) the real rate of interest tends to fall.
During the Great Depression
A) the unemployment rate was not unusually high, but wage levels were low. B) unemployment statistics were not collected. C) the U.S. unemployment rate reached its historical highest. D) most people who couldn't find work left the labor force, so the official unemployment rate remained low.
The many layers of the federal government in the United States:
A. lead to economic inefficiencies because of difficulty aggregating and conveying information. B. enhance government's ability make effective decisions quickly. C. better allow the invisible hand to direct government resources to their best uses. D. improve accountability of government officials, thus leading to more efficient policies.
Are there impediments to international movement of labor and capital?
A. Yes, but they apply to labor only; capital mobility is almost completely free. B. Yes, although these apply to capital, and not to labor. C. Yes, there are significant (often prohibitive) restrictions on labor and capital mobility. D. No, these have been removed with the passage of recent trade legislation.