FIGURE 2-9 -Refer to Fig. 2-9. If You Start from the Bakery

question 21

Multiple Choice

FIGURE 2-9
-Refer to Fig. 2-9. If you start from the Bakery, travel to the Art Gallery, and then to the Cafe, in 1.0 hour, what is your average speed?

• A)6.5 km/hr
• B)2.5 km/hr
• C)9.0 km/hr
• D)10.5 km/hr
• E)1.5 km/hr

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Definitions:

Foreign Demand

The desire and willingness of buyers in other countries to purchase goods and services from a particular country.

Consumer Surplus

The difference in the total funds consumers are prepared to allocate for a good or service against the total funds they genuinely allocate.

Consumer Surplus

The contrast in the total money consumers are willing to shell out for a good or service versus what they truly pay.

Speculative Demand

Demand driven not by the direct benefits one obtains from owning or consuming a good but instead by an expectation that the price of the good will increase.