Charlene is willing to pay 5.00 for a sandwich. If Charlene must ...

[jeatrice]

Charlene is willing to pay 5.00 for a sandwich. If Charlene must pay ________ for a sandwich, she ________.
 
  A) 4.00; does not receive consumer surplus
  B) 4.00; receives consumer surplus
  C) 6.00; receives consumer surplus
  D) 6.00; receives a marginal cost

Question 2

Using the notation Pt to designate this period's price level and Pt-1 to designate last period's price level, the formula for measuring the inflation rate from last period to this period is
 
  A) (Pt - Pt - 1 ) / Pt  100.
  B) (Pt -1 - Pt) / Pt - 1  100.
  C) (Pt - Pt - 1 ) / Pt - 1  100.
  D) (Pt -1 - Pt) / Pt  100.

[emilymalinowski12]

Answer to Question 1

B

Answer to Question 2

C

[jeatrice]

YES! Correct, THANKS for helping me on my review

[Viet Thy]

Excellent