The Following Question Are Based on the Following Information

question 11

Multiple Choice

The following question are based on the following information. Five adolescents are willing to buy the latest iPhone game at these prices:

-A $1 price increase would reduce the quantity demanded in this market by

• A) zero.
• B) one.
• C) two.
• D) three.
• E) four.

---

Definitions:

Consumer Surplus

The variance between the aggregate sum consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive following trade.

Marginal Benefit

The boost in pleasure or utility a person gets from purchasing one more unit of a product or service.

Output

The aggregate output of products or services generated by an enterprise, sector, or economic system over a defined time frame.