The above figure shows Dana's marginal benefit curve for ice cream. If the market price is $2 per gallon, then Dana's consumer surplus from the 4th gallon of ice cream is

Refer to Table 2-13. What is Horace's opportunity cost of bathing a cat?

A) one and a half groomed dogs B) two groomed dogs C) two-thirds of a groomed dog D) half a groomed dog

During droughts, cities often impose water use restrictions on consumers. Suppose a representative consumer has preferences for Water (W) and other goods (X) given by the utility function:

U(W,X) = WX. Suppose the price of other goods is $1 and the price of water is initially 50¢. The consumer has a budget of $50/week. a. How much water will the consumer purchase each week? b. Suppose the government imposes a quota on water use of 50 units/week. Show that the quota reduces the representative consumer's utility. c. By how much does the quota harm the representative consumer? Specifically, compute the equivalent variation of the quota.