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Ivahew [28]
3 years ago
15

As a consumer you believe yourself to act rationally, optimally and self-interestedly. You like ice cream and value a pint at $7

. Usually you buy a pint each week at $4. This week however, the price jumped to $5 a pint. What would you do? a. ​buy the ice cream since the price is still below your maximum willingness to pay b. ​buy the ice cream since even at the new price it gives you a positive amount of consumer surplus c. ​not buy the ice-cream since the price is now higher d. ​both A&B
Business
1 answer:
enyata [817]3 years ago
8 0

Answer:

both A&B

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

A rational consumer would always purchase a good if the price of the good is below the consumer surplus.

When tue price was $4, the consumer surplus is $7-$4=$3

When the price is $5, the consumer surplus is $7-$5=$2

The consumer should still purchase the good since the consumer surplus is still postive.

I hope my answer helps you

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Answer:

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Explanation:

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4 years ago
Which of the following is true about open-end mutual funds?
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6 0
3 years ago
In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base
iragen [17]

Answer: c. machine hours.

Explanation:

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7 0
4 years ago
Suppose the working-age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60
Taya2010 [7]

Answer:

The correct answer is C.

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Giving the following information:

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4 0
3 years ago
Incline Company generated $4,900,000 in revenue selling 4,025 units of its only product. Each unit has a contribution margin of
Hatshy [7]

Answer:

23%

Explanation:

The computation of the contribution margin ratio is shown below:-

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Therefore for computing the contribution margin ratio we simply divide selling price by contribution margin.

6 0
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