You Paid $35 for a Ticket (Which Is Non-Refundable)to See

question 64

Multiple Choice

You paid $35 for a ticket (which is non-refundable) to see SPAM, a local rock band, in concert on Saturday. Assume that $35 is the most you would have been willing to pay for a ticket. Your boss called, and she is looking for someone to cover a shift on Saturday at the same time as the concert. You would have to work 4 hours and she would pay you $11/hr. The psychic cost to you of working is $2/hr. What is the opportunity cost of going to the concert?

• A)$1
• B)$9
• C)$35
• D)$36

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Definitions:

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific price.

Quantity Supplied

The total amount of a particular good or service that producers are willing and able to sell at a given price over a specified period.

Quantity Demanded

The amount of a good or service that consumers are willing and able to buy at a specific price.

Surplus

The situation in which the quantity of goods or services supplied exceeds the quantity demanded at the current price.