Author Question: Four people each have a different willingness to pay for one unit of a good: George will pay 15, ... (Read 27 times)

Beheh · **on:** Jun 29, 2018

Four people each have a different willingness to pay for one unit of a good: George will pay 15, Glen will pay 12, Tom will pay 10, and Peter will pay 8. If price decreases from 9 to 8 then the consumer surplus from this unit will increase by

A) 3.
B) 4.
C) 2.
D) 1.

Question 2

The figure above illustrates a linear demand curve. By comparing the price elasticity in the 2 to 4 price range with the elasticity in the 8 to 10 range, you can conclude that the elasticity is

A) greater in the 8 to 10 range.
B) greater in the 2 to 4 range.
C) the same in both price ranges.
D) greater in the 8 to 10 range when the price rises but greater in the 2 to 4 range when the price falls.