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Tim associates his cousin Alice with a number of enjoyable activities, and therefore Tim expects to have fun around Alice. He also expects the same amount of fun when he spends time with his friends Vern and Ed together. One day his parents give him a choice: he can spend the day with Alice and one of her school friends (whom Tim has never met), or he can spend the day with Ed (without Vern). Which choice is Tim likely to make? How do you know?
Price
The quantity of money considered, needed, or paid in exchange for something.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service and what they actually pay, measuring the benefit to consumers.
Tax
A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures.
Tax Per Unit
A specific amount of tax imposed on each unit of a product or service, often used to regulate consumption or raise government revenue.
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