A surplus occurs when the quantity of a good supplied at the existing price is greater than the quantity demanded

Water is considered a scarce good rather than a free good because:

A) it has alternative uses. B) it does not have alternative uses. C) scarce goods are less expensive than free goods. D) free goods are more expensive than scarce goods

Refer to Figure 4-1. If the market price is $2.50, what is the maximum number of ice cream cones that Kendra will buy?

A) 1 B) 2 C) 3 D) 4