After Negotiating a New Supply Contract with Jim,Beth Takes Him

question 74

Multiple Choice

After negotiating a new supply contract with Jim,Beth takes him to dinner at the Magnolia Cafe.The dinner costs $94.The amount includes tip ($15) and sales tax ($5) .Cab fare to and from the restaurant is $20.How much can Beth deduct for the evening's expenditures?

• A)$ 47
• B)$ 52
• C)$ 67
• D)$ 94
• E)$114

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Definitions:

Electricity Sales

The volume of electrical energy sold, typically measured in kilowatt-hours (kWh), to end users or consumers.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.

Two-part Tariffs

A pricing strategy that consists of a fixed fee plus a variable usage fee.