Suppose Dan is willing to pay a maximum of $3,000 for a piano, but finds one he can buy for $2,500. Dan's consumer surplus from this piano is
A) $5,500.
B) $3,000.
C) $2,500.
D) $500.
E) zero because he buys the piano.
D
Economics
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When moving along the production possibilities frontier, opportunity cost is measured as the
A) increase in the quantity produced of one good divided by the decrease in the quantity produced of another good. B) decrease in the quantity produced of one good divided by the increase in the quantity produced of another good. C) quantity produced of one good divided by the quantity produced of another good. D) quantity produced of one good multiplied by the quantity produced of another good.
Economics
An inferior good is a good whose income elasticity of demand is less than 0
Indicate whether the statement is true or false
Economics