Refer to Figure 9.8. If free trade in sugar is allowed, consumer surplus will be

A) $175.
B) $250.
C) $30,625.
D) $61,250.
E) $62,500.

E

Economics

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The graph below shows part of a consumer's indifference map for units of coffee and tea, where I1 and I2 represent indifference curves. Which of the following statements is correct?



A. The consumer prefers E to F
B. The consumer prefers C to A
C. The consumer likes B and D equally well
D. The consumer likes D better than E

Economics

You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your economic surplus from working as a math tutor instead of going to the movies?

A. $2 B. $8 C. $12 D. $10

Economics