uPplus from each gallon of gasoline 4) The figure above shows Diane\'s demand cu
ID: 1166783 • Letter: U
Question
uPplus from each gallon of gasoline 4) The figure above shows Diane's demand curve decreased after the price increase. drove less. for soda. The price of a soda is $1.00. Diane's consumer surplus from her 10th soda is C) Drivers received no consumer surplus D) Consumer surplus increased if drivers E) If consumers drove the same amount A) $1.00. B) $0.00. C) $2.50. D) $0.50 E) $1.50 they recèived less total benefit. 3) A point on the supply curve can illustrate the 5) The figure above shows Diane's demand curve A) marginal cost of that unit of the good. B) price and the corresponding quantity for soda. The price of a soda is $1.00. Diane's consumer surplus from all 15 sodas is supplied C) price the consumer is willing to pay D) Both answers A and B are correct. E) Both answers A and C are correct. A) $11.25 B) $22.50. C) $15.00. D) $8.00. E) $1.50.Explanation / Answer
3.
Correct Answer:
D
The supply curve above the shutdown point is the marginal cost curve, hence it can help to find the marginal cost of a particular unit of product. Further, as per the law of supply, any point on supply curve tells the price at that point and quantity supplied at that price.
Q. 4 and Q. 5 require figure, but it is not given in the question image.
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