The area above the supply curve and below the market price represents:
a. the consumer surplus
b. the producer surplus.
c. the deadweight loss of the producer.
d. the deadweight loss of the consumer.
B
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Refer to the scenario above. If Sarah is optimizing in differences, then which of the following statements is true?
A) An optimizer will rent the hotel room for three days if the net benefit of staying for three days exceeds the net benefit of staying for two days. B) An optimizer will rent the hotel room for three days if the cost of staying for the first two days is less than the cost of staying for the third day. C) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the benefits of staying for the first two days. D) An optimizer will rent the hotel room for three days if the benefit of staying for the third day exceeds the cost of staying for the third day.
If the price of pineapple juice was $4.50 a gallon and it is now $5.75 a gallon, what is the percentage change in price?
A) 7.8 percent B) 12.5 percent C) 27.7 percent D) 57.5 percent