Use the Following to Answer Questions

question 22

Multiple Choice

Use the following to answer questions:
-(Table: Total Cost and Total Individual Benefit) Look at the table Total Cost and Total Individual Benefit. If there are 1,000 residents and they all have the same total individual benefit, as shown in the table, what is the marginal social benefit of the fourth animal control officer?

• A) $10
• B) $9,000
• C) $10,000
• D) $90,000

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Definitions:

Determinants of Demand

Factors that influence the quantity of a product or service that consumers are willing and able to buy at a given price.

Sum of Demand Curves

The aggregate demand curve that is obtained by horizontally adding individual demand curves in a market.

Snob Effect

A phenomenon where the demand for a certain good increases as the price increases because the good is perceived as being more desirable, exclusive, or prestigious.

Luxury Goods

High-quality, expensive items that are not essential but are desired for their status symbol and prestige.