Use the Following Information to Answer the Question

question 51

Multiple Choice

Use the following information to answer the question. Lambda olive oil is touted as the "World's most expensive olive oil." A twelve ounce bottle typically costs fifty dollars or more. In a blind taste test, a group of food experts tasted three premium olive oils, one of which was Lambda olive oil. When asked to pick the Lambda olive oil, 84 got it right and 87 got it wrong.
-If this group were just guessing, how many people (out of 171) would be expected to guess correctly?

• A)57
• B)Not enough information given to calculate expected value.
• C)114
• D)86

---

Definitions:

Consumer Surplus

The contrast between the expected payment by consumers for a good or service and the actual price paid.

Market Supply

The total quantity of a good or service that producers are willing and able to sell at various prices during a given time period.

Market Demand

is the total amount of a product or service that consumers in a market are willing and able to purchase at different prices, during a certain time period.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.