Given that C = $500 + 0.8YD, if the level of disposable income is $1,000, the level of saving is

The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is

A) $1. B) $2. C) $3. D) $8.

Should a monopoly charge low introductory price in a two-period model?

A) Yes, if the extra profit in the second period is greater than the foregone in the first period. B) Yes, if the demand in the second period is greater than the demand in the first period. C) No. The first period profit is counted more. D) No. Profit maximization decisions should be made separately.