Charles wants to buy a pound of salted tuna. He is willing to pay up to $3 per pound for his favorite brand. The local store sells this brand of tuna for $2 . If Charles purchases a pound of tuna, then his consumer surplus is _____

a. $1
b. $1.50
c. $0.50
d. $2

a

Economics

You might also like to view...

In an oligopoly, firms can increase their market power by

A) undertaking heavy advertising expenditure. B) colluding to set prices. C) selling to buyers who have market power. D) pursuing dominant strategies.

Economics

The nation as a whole is better off from trade as long as the gains from the winners exceed the losses from the losers

Indicate whether the statement is true or false

Economics