Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

-Emily goes to a music store looking to buy the latest Bruno Mars CD. She' s willing to pay up to $18.99 but is told

-Emily goes to a music store looking to buy the latest Bruno Mars CD. She' s willing to pay up to $18.99 but is told at the cash register that all CD's are marked down by 1/3rd. What's the value of Emily's consumer surplus?

-There are six potential buyers of computer games each willing to buy only one game. Person 1 will pay $40; Person 2 will pay $35; 3, $30; 4, $25; 5, $20; and 6, $15

  • If the market price is $29, what is total consumer surplus?
  • If the price decreases by $10, what is total consumer surplus now?

2.To Vivien clothing has a marginal utility of 20 utils and food a marginal utility of 20 utils.If clothing cost $4 and food $8, is Vivien doing her best in terms of satisfaction? If not, what could she do?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these Economics questions

Question

What are the pros and cons of credit? Critical T hinking

Answered: 1 week ago