A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills is $320, given the scenario described, Abe's consumer surplus would be:
A. $400.
B. $350.
C. $320.
D. $80.
D. $80.
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OPEC stands for
A. Organization of Petrol Exploiting Companies. B. Organization of Petroleum Exporting Countries. C. Oil Producing and Exploiting Countries. D. Oil and Petroleum Exporting Companies.
Refer to Figure 9-5. With the tariff in place, the United States
A) imports 20 million pounds of coffee. B) exports 38 million pounds of coffee. C) imports 18 million pounds of coffee. D) imports 12 million pounds of coffee.
Refer to Figure 27-3. Suppose the vertical distance between the points (0, A) and (0, B) is 12. If his wealth increased from $1,300 to $1,800, then
A) Dexter's subjective measure of his well-being would increase by less than 12 units. B) Dexter's subjective measure of his well-being would increase by more than 12 units. C) Dexter would change from being a risk-averse person into a person who is not risk averse. D) Dexter would forgo the insurance he bought when his wealth was $1,300.
Refer to Scenario 16.2 below to answer the question(s) that follow. SCENARIO 16.2: The marginal benefit for a particular food is described by MB = 60 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 3q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 5q.Refer to Scenario 16.2. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $20 B. 0 units of food; $0 C. 15 units of food; $45 D. 10 units of food; $50