Chapter 4 PQ

Chapter 4 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. Table 4 - 1 Consumer Willingness to Pay Tom $40 Dick $30 Harriet $25 1) Refer to Table 4 - 1. The table above lists the highest prices three consumers, Tom, Dick and Harriet, are willing to pay for a short - sleeved polo shirt. If the price of the shirts falls from $28 to $20 1) A) consumer surplus increases from $14 to $35. B) Harriet will receive more consumer surplus than Tom or Dick. C) Tom will buy two shirts; Dick and Harriet will each buy one shirt. D) consumer surplus will increase from $70 to $95. Table 4 - 2 Marko's Polos Marginal Cost (Dollars) 1st shirt $7 2nd shirt 10 3rd shirt 15 4th shirt 20 2) Refer to Table 4 - 2. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $18 2) A) producer surplus from the first shirt is $18. B) there will be a surplus; as a result, the price will fall to $7.
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Chapter 4 PQ - Exam Name_ MULTIPLE CHOICE. Choose the one...

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