In Problem 1, Sir Plus Has a Demand Function for Mead

question 20

Multiple Choice

In Problem 1, Sir Plus has a demand function for mead that is given by the equation D(p) = 100 - p. If the price of mead is $95, how much is Sir Plus's net consumer's surplus?

• A) 25
• B) 6.25
• C) 5
• D) 12.50
• E) 9,500

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Definitions:

Walking Purchase

A controversial 1737 agreement where Pennsylvania colonists claimed to have purchased land from the Lenape Indians based on the distance covered in a day and a half walk, significantly expanding colonial territory.

Delaware Indians

A Native American tribe originally located in the Delaware River area, also known as the Lenape.

Beaver Pelts

Beaver pelts refers to the fur of beavers, which was highly sought after for the manufacture of hats and garments, especially in the 17th and 18th centuries, driving the North American fur trade.

Sioux

A group of Native American tribes and First Nations peoples primarily inhabiting the Great Plains of the United States and Canada.