Nick Can Purchase Each Milkshake for $2

question 431

Multiple Choice

Nick can purchase each milkshake for $2. For the first milkshake purchased Nick is willing to pay $4, for the second milkshake $3, for the third milkshake $2 and for the fourth milkshake $1. What is the value of Nick's consumer surplus for the milkshakes he buys?

• A) $2
• B) $9
• C) $3
• D) $10

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Definitions:

Commission Incomes

Earnings made based on a percentage of sales or transactions completed, common in sales roles.

Confidence Interval

An estimated span, defined by a certain probability, that is anticipated to include the accurate measure of a yet-to-be-determined demographic variable.

Variance

A measure of the dispersion or spread of a set of data points or random variables, showing how much the values differ from the mean of the set.

Allergies

Immune system responses to a foreign substance that's not typically harmful to the body, such as pollen, certain foods, or pet dander.