Table 5.2.4 Table 5.2.4 Shows the Demand Schedules for Pizza for Abby

question 14

Multiple Choice

Table 5.2.4

Table 5.2.4 shows the demand schedules for pizza for Abby and Barry who are the only buyers in the market.
-Refer to Table 5.2.4.What is the marginal social benefit from the 45th slice of pizza?

• A)$3.50
• B)$4.00
• C)$2.50
• D)$5.00
• E)$4.50

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Definitions:

Indifferent

A state of having no preference between two or more outcomes; neutrality in preference.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Future Value

The amount of money in the future that an amount of money today will yield, given prevailing interest rates

Risk-averse Individuals

People who prefer to avoid risk and would rather accept a lower expected return on an investment than subject themselves to higher volatility and potential loss.