The Following Table Shows the Utility (Measured in Dollars)which Lisa

question 46

Multiple Choice

The following table shows the utility (measured in dollars) which Lisa derives from water (in 50 litre drums) and diamonds (uncut 1 carat stones) .

-Refer to the above information to answer this question.If the price of both water and diamonds is $100 per unit,and Lisa has $500 to spend,what is the value of her total consumer surplus if she purchases the optimal quantity?

• A)0.
• B)$375.
• C)$620.
• D)$875.
• E)$1,120.

Apply the concept of present value and discounting in investment decisions.

Calculate the growth rate of a population or establishments using past data.

Understand and apply the formula for compounded annual growth rate (CAGR).

Evaluate investment options to determine which provides the highest future value.

---

Definitions:

Purpose

The reason for which something is done or created, or for which something exists.

Customized Solution

A tailored answer or product designed to meet the specific needs of an individual or organization.

Tailor

To customize or adjust something to suit specific needs, preferences, or requirements.