​Hester Wants to Spend No More Than $ 48 at the Grocery

question 44

Multiple Choice

​Hester wants to spend no more than $ 48 at the grocery store. She needs to buy a pound of a salmon for $ 12 . A bag of organic apples costs $ 9 . How many bags of organic apples can she buy?

• A) ​ 4 bags
• B) ​ 10 bags
• C) ​ 9 bags
• D) ​ 6 bags
• E) ​ 5 bags

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they do actually pay.

Total Costs

refer to the sum of all the expenses involved in producing a good or service, including both fixed and variable costs.

Profit Maximizes

The process by which a company establishes the price and volume of output that leads to the maximum profit.

Deadweight Loss

The reduction in total surplus that results from a market distortion, such as a tax or subsidy, signaling inefficiencies in allocation of resources.