Four People Each Have a Different Willingness to Pay for One

question 185

Multiple Choice

Four people each have a different willingness to pay for one unit of a good: George will pay $15, Glen will pay $12, Tom will pay $10, and Peter will pay $8. If price decreases from $9 to $8 then the consumer surplus from this unit will increase by

• A) $3.
• B) $4.
• C) $2.
• D) $1.

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Definitions:

Terrace Farming

An agricultural practice of making flat areas or terraces on hilly terrain to prevent erosion and runoff, improve irrigation, and increase usable farming area.

Cover Crops

Plants grown primarily to benefit the soil and ecosystem, rather than for harvested crops, through means like erosion prevention and weed suppression.

Underground Water

Water that exists beneath the Earth's surface in soil pore spaces and in the fractures of rock formations, also known as groundwater.

Radioactive Decay

The process by which an unstable atomic nucleus loses energy by emitting radiation, such as alpha particles, beta particles, or gamma rays.