Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one of the tickets is $36
A) Walter will receive $4 of consumer surplus from buying one ticket.
B) Violet and Walter receive a total of $52 of consumer surplus from buying one ticket each. No one else will buy a ticket.
C) Violet and Walter will each buy two tickets.
D) Xavier, Yolanda, and Zachary will receive a total of $68 of consumer surplus since they will buy no tickets.
A
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According to Okun's Law, when the natural employment rate is 6 percent and potential GDP is $10 trillion, then when actual employment is 5 percent, real GDP is
A) $10.1 trillion. B) $9.9 trillion. C) $9.8 trillion. D) $10.2 trillion. E) $8 trillion.
If an excise tax is placed on a product that has a perfectly inelastic demand, then:
A. the entire tax will be paid by the consumer. B. the entire tax will be paid by the producer. C. the consumer and producer will each pay a share of the tax. D. the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.