Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is Select one: O a. $0.60. O b. $1.00. O c. $0.50. O d. $0.70.
Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is Select one: O a. $0.60. O b. $1.00. O c. $0.50. O d. $0.70.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Abraham drinks Mountain Dew. He can buy as many cans of Mountain Dew as he wishes at a price of $0.55 per
can. On a particular day, he is willing to pay $0.95 for the first can, $0.80 for the second can, $0.60 for the third
can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer
surplus is
Select one:
O a. $0.60.
O b. $1.00.
O c. $0.50.
O d. $0.70.
Transcribed Image Text:Which of the following is a macroeconomics question?
Select one:
O a. Should we have a constitutional amendment to balance the federal budget?
O b. Should the government prevent the merger of two large firms?
O c. Should the government put a tax on alcohol in an attempt to reduce highway fatalities?
O d. Why does a firm decide to enter a particular market?
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