Answer the Question Based on the Following Information

question 70

Multiple Choice

Answer the question based on the following information.Way-Below Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism.The university is now considering several alternative levels of crime control.This table shows the expected annual costs and benefits of these alternatives.If Way-Below Normal undertakes Level Three:

• A)total benefits will be less than total costs.
• B)marginal costs will exceed marginal benefits.
• C)there would be an under-allocation of resources to crime control.
• D)there would be an over-allocation of resources to crime control.

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Definitions:

Sensitivity of Price

The degree to which the price of a product or service impacts consumer demand or the quantity supplied.

Inelastic Demand

Refers to a market situation where the demand for a product does not change significantly in response to a change in price.

Elastic Demand

A market scenario where the quantity demanded of a product or service significantly changes in response to a change in price.

Fast-Food

Quick service restaurants serving food that is prepared and served rapidly.