Author Question: If a buyer's reservation value for a good is 15 and the price at which he purchases the good is 8, ... (Read 65 times)

Deast7027

  • Hero Member
  • *****
  • Posts: 538
If a buyer's reservation value for a good is 15 and the price at which he purchases the good is 8, his consumer surplus is:
 
  A) 7.
  B) 1.8.
  C) -7.
  D) 120.

Question 2

If no beautification projects were undertaken in a city except by private individuals or firms, the city would almost surely be less beautiful than otherwise comparable cities because
 
  A) aesthetic standards vary so widely.
  B) it is extremely difficult to induce people to pay on a voluntary basis for the pleasure they receive from urban beautification projects.
  C) people may enjoy beauty, but they are not willing to pay for it.
  D) private individuals and firms generate more external costs than benefits.



raenoj

  • Sr. Member
  • ****
  • Posts: 340
Answer to Question 1

A

Answer to Question 2

B



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

The strongest synthetic topical retinoid drug available, tazarotene, is used to treat sun-damaged skin, acne, and psoriasis.

For a complete list of videos, visit our video library