Suppose Mary is willing to pay up to $15,000 for a used Ford pick-up truck. If she buys one for $12,000, her ________ would be ________.
A. cost; $15,000
B. economic surplus; $12,000
C. benefit; $12,000
D. economic surplus; $3,000
Answer: D
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The demand curve is: QD = 500 - 1/2 P
a. Calculate the (point) price elasticity of demand when price is $100. Is demand elastic or inelastic? b. Calculate the (point) price elasticity of demand when price is $700. Is demand elastic or inelastic? c. Find the point at which point elasticity is equal to -1.
Which of following is NOT true of the equilibrium price?
A. Sellers who are willing to accept the equilibrium price can sell what they produce. B. It is fair in the sense that everyone can afford basic goods and services. C. It measures the value of the last unit sold to consumers. D. Buyers who are willing to pay the equilibrium price can acquire the good.