John Has a Marginal Benefit of $7 for 1 Slice

question 75

Multiple Choice

John has a marginal benefit of $7 for 1 slice of pizza,$5 for a second slice,$3 for a third slice,$1 for a fourth slice,and $0.50 for a fifth slice.The price of pizza is $1.50 per slice.Which of the following statements is correct?

• A) John will purchase 3 slices of pizza and have consumer surplus of $10.50.
• B) John will purchase 4 slices of pizza and have consumer surplus of $12.00.
• C) John will purchase 2 slices of pizza and have consumer surplus of $1.50.
• D) John will purchase 3 slices of pizza and have consumer surplus of $4.50.
• E) John will purchase 2 slices of pizza and have consumer surplus of $3.00.

---

Definitions:

Promotional Elements

Components of marketing communication, including advertising, sales promotions, public relations, and direct marketing.

Promotional Efforts

Activities and strategies implemented by a business to promote and advertise its products or services to increase sales or public awareness.

Ultimate Consumers

Individuals who buy products or services for personal use and not for manufacture or resale.

Intermediaries

Entities or individuals that act as middlemen in the distribution channel, facilitating transactions between producers and end-users.