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The new mayor of New York City, Eric Adams, has determined that the price of New York style cheesecake has risen to incorrect levels. He
The new mayor of New York City, Eric Adams, has determined that the price of New York style cheesecake has risen to incorrect levels. He has proposed a price ceiling to address this problem.
Below is a table produced by the Adams administration regarding the costs and benefits to his approval rating based on the proposed price ceilings. Select which price ceiling is best for Mayor Adams (3 pts.) and explain how you know its best. (2 pts.)
Proposed Price Ceiling | Marginal Benefit | Marginal Cost |
1 | 15 | 2 |
2 | 15 | 3 |
3 | 15 | 5 |
4 | 15 | 10 |
5 | 15 | 15 |
6 | 15 | 20 |
7 | 15 | 30 |
8 | 15 | 50 |
9 | 15 | 80 |
10 | 15 | 120 |
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