Scenario 12-1 Suppose Jim and Joan Receive Great Satisfaction from Their Consumption

question 53

Multiple Choice

Scenario 12-1
Suppose Jim and Joan receive great satisfaction from their consumption of cheesecake.Joan would be willing to purchase only one slice and would pay up to $6 for it.Jim would be willing to pay $9 for his first slice,$7 for his second slice,and $3 for his third slice.The current market price is $3 per slice.
-Refer to Scenario 12-1.How much consumer surplus does Joan receive from consuming her slice of cheesecake?

• A) $3
• B) $6
• C) $9
• D) $12

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Definitions:

Budgeted Units

An estimated quantity of goods or services that a company plans to sell or produce within a specific period.

Production

The process of creating, manufacturing, or using goods and services.

Units

Basic quantities or measurements in which variables, production, or processes are expressed and analyzed.

February

The second month of the Gregorian calendar, known for having 28 days in common years and 29 days in leap years.