Refer to the information provided in Figure 7.8 below to answer the question(s) that follow.  Figure 7.8Refer to Figure 7.8. The firm is currently along isocost CE. If the price of capital is $12, then the price of labor is

John has a marginal benefit of $7 for 1 slice of pizza, $5 for a second slice, $3 for a third slice, $1 for a fourth slice, and $0.50 for a fifth slice. The price of pizza is $1.50 per slice. Which of the following statements is correct?

A) John will purchase 3 slices of pizza and have consumer surplus of $10.50. B) John will purchase 4 slices of pizza and have consumer surplus of $12.00. C) John will purchase 2 slices of pizza and have consumer surplus of $1.50. D) John will purchase 3 slices of pizza and have consumer surplus of $4.50. E) John will purchase 2 slices of pizza and have consumer surplus of $3.00.

Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets

A) rise; depreciate B) fall; appreciate C) rise; appreciate D) fall; depreciate