Related to the Economics in Practice on Page 203: the Price

question 283

Multiple Choice

Related to the Economics in Practice on page 203: The price of hot dogs sold from a cart in New York's Central Park is much higher than the standard price elsewhere in New York. Which of the following, if true, would provide the best explanation for this difference?

• A) Only licensed vendors may sell hot dogs from a cart, and the price of that license is higher for sales in Central Park than it is for sales elsewhere in New York.
• B) The standard price of hot dogs in New York is higher than the standard price of hot dogs in other cities.
• C) In Central Park, prices for hamburgers and other foods are typically higher than they are outside of Central Park.
• D) Almost all hot dog vendors sell essentially the same product: a standard quality-certified hot dog and two varieties of mustard.

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Definitions:

Complements

Goods or services that are often used together, where the use or consumption of one enhances the use or consumption of the other.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount actually paid.

Early Freeze

An event where temperatures drop to freezing levels earlier in the season than is typically expected.

Lemon Crop

The production output of lemons within a particular period.