Author Question: Charlene is willing to pay 5.00 for a sandwich. If Charlene must pay ________ for a sandwich, she ... (Read 43 times)

jeatrice · **on:** Jun 29, 2018

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.