The figure above shows the market demand curve for pizza. a) ...

[@Brianna17]

The figure above shows the market demand curve for pizza.
 
  a) What is the marginal social benefit of the 20th pizza?
  b) What is the maximum price a consumer is willing to pay for the 20th pizza?
  c) If the price of a pizza is 6, what is the consumer surplus of the 20th pizza?
  d) If the price of a pizza is 10, what is the consumer surplus?
  e) If the price of a pizza is 6, what is the consumer surplus?

Question 2

When the market for gasoline in Motorland is in equilibrium, the market price of gasoline is ________ the marginal social cost.
 
  A) 1.50 above
  B) 1.50 below
  C) equal to
  D) 1.20 above

[lauravaras]

Answer to Question 1

a) The marginal social benefit of the 20th pizza is 10.
b) The maximum price a consumer is willing to pay for the 20th pizza is 10.
c) If the price of a pizza is 6, the consumer surplus of the 20th pizza is 4.
d) If the price of a pizza is 10, the consumer surplus is 40.
e) If the price of a pizza is 6, the consumer surplus is 160.

Answer to Question 2

B

[@Brianna17]

Correct answers!

[lauravaras]

Great! Please up vote