The graph on the right shows the willingness to pay of two consumers, Annie andBen. We can determine from the graph that when the market price PM = $27,Annie's consumer surplus isand Ben's isAssuming the shaded region consists of the total market consumer surplus, then itsvalue is $ (Enter your response as a whole number.)Consumer surplus is based on which of the following economic theories?OA. Marginal analysisOB. Marginal costs onlyOC. Total benefitsOD. Marginal benefits onlyFinancial incentives can help make people behave in a desired way when theincentives areO A. combined with moral suasion.OB. enough to satisfy other needs.OC. substantial.OD. provided consistently.Price ($)10080-60- A40-PM-27200-0BDEC.Ben40 50Quantity soldAnnie10 20 306070 80OoS

The difference between what customers are prepared to pay and what they actually have to pay in the…

Consumer surplus is based on which of the folle OA. Marginal analysis OB. Marginal costs only OC. Total benefits OD. Marginal benefits only Financial incentives can help make people beha incentives are O A combined with moral suasion. OB. enough to satisfy other needs. OC. substantial. OD. provided consistently

Consumer surplus is based on which of the folle OA. Marginal analysis OB. Marginal costs only OC. Total benefits OD. Marginal benefits only Financial incentives can help make people beha incentives are O A combined with moral suasion. OB. enough to satisfy other needs. OC. substantial. OD. provided consistently

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph on the right shows the willingness to pay of two consumers, Annie and
Ben. We can determine from the graph that when the market price PM = $27,
Annie's consumer surplus is
and Ben's is
Assuming the shaded region consists of the total market consumer surplus, then its
value is $ (Enter your response as a whole number.)
Consumer surplus is based on which of the following economic theories?
OA. Marginal analysis
OB. Marginal costs only
OC. Total benefits
OD. Marginal benefits only
Financial incentives can help make people behave in a desired way when the
incentives are
O A. combined with moral suasion.
OB. enough to satisfy other needs.
OC. substantial.
OD. provided consistently.
Price ($)
100
80-
60- A
40-
PM-27
20
0-
0
B
D
E
C.
Ben
40 50
Quantity sold
Annie
10 20 30
60
70 80
Oo
S

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