TABLE 3-12 Energy Drink Consumption Has Continued to Gain in Popularity Since

question 12

Multiple Choice

TABLE 3-12
Energy drink consumption has continued to gain in popularity since the 1997 debut of Red Bull, the current leader in the energy drink market. Given below are the exam scores and the number of 12-ounce energy drinks consumed by 10 college students within a week prior to the exam.

-Referring to Table 3-12, for a student who has consumed a high number of energy drinks within the week prior to the exam, you will expect his/her exam score to

• A) be noticeably higher than the exam score had he/she not consumed as much energy drink.
• B) be noticeably lower than the exam score had he/she not consumed as much energy drink.
• C) not be noticeably different than the amount of energy drinks that he/she consumed.
• D) not be noticeably different than the exam score had he/she not consumed as much.

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Definitions:

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount received by them when the good is sold.

Consumer Surplus

The variance between the price consumers are ready to offer for a good or service and the price they actually incur.

Price Ceiling

A government-imposed limit on how high the price of a product can be charged in the market to protect consumers from high prices.

Consumer Surplus

The gap between the amount consumers are prepared to spend on a product or service and the amount they end up paying.