Use the Following to Answer Questions: Table: Sweetbrand Cheesecakes -(Table: Sweetbrand Cheesecakes) the Table Shows the Maximum Consumer Willingness

question 194

Multiple Choice

Use the following to answer questions: Table: Sweetbrand Cheesecakes $$\begin{array} { l c } \hline \text { Consumer } & \begin{array} { c } \text { Maximum willingness to pay } \\\text { for Sweetbrand cheesecakes }\end{array} \\\hline \text { Frodo } & \$ 11.65 \\\text { Sam } & 17.99 \\\text { Mary } & 12.99 \\\text { Pippin } & 16.75 \\\hline\end{array}$$
-(Table: Sweetbrand Cheesecakes) The table shows the maximum consumer willingness to pay for Sweetbrand cheesecakes. Which of the four consumers receives the most consumer surplus, if the market price of the cheesecakes is $12.50 each?

• A) Frodo
• B) Sam
• C) Mary
• D) Pippin

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Definitions:

Terms Of Trade

The ratio at which a country can trade its exports for imports from other countries.

Price Stability

An economic objective aiming to maintain a steady rate of inflation, allowing for predictable planning and investing.

Interest Inelastic

A situation where the demand for or the supply of a good or service does not significantly change in response to changes in interest rates.

Reverend Thomas Malthus

An 18th-century economist known for his theory on population growth, suggesting that population increases geometrically, whereas food supply increases arithmetically, leading to inevitable shortages.