Question 1

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one.
-What is meant by the term consumer surplus?

Accepted Answer

A) It is the difference between the actual price of a product and its real value. 
B) It is the surplus which consumers receive from a product as a result of a drop in its price. 
C) It is the difference between what the consumer is willing to pay and the actual price of the product. 
D) It is the difference between the price which consumers pay for a product and the actual costs of production.

Question 2

-Refer to the above information to answer this question.What is the marginal utility of the 3rd unit?

Accepted Answer

A) 30. 
B) 45. 
C) 48. 
D) 143. 
E) Cannot be determined.

Question 3

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below:
 
-Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,what would be the total revenue received?

Accepted Answer

A) $550. 
B) $595. 
C) $625.50 
D) $636. 
E) $670.

Question 4

What is the amount of additional utility derived from the consumption of an extra unit of a product called?

Accepted Answer

A) Marginal utility. 
B) Optimal utility. 
C) Marginal demand. 
D) Optimal demand.

Exam 5: Consumer Choice

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one. -What is meant by the term consumer surplus?

-Refer to the above information to answer this question.What is the marginal utility of the 3^rd unit?

In Longolia,beer drinking is associated with blood types.The demand for beer of the three major blood groups is shown below: -Refer to the above information to answer this question.If the beer producers charged the same price to all consumers,what would be the total revenue received?

What is the amount of additional utility derived from the consumption of an extra unit of a product called?