Table 7-15 -Refer to Table 7-15. You and Your Best Friend Want

question 52

Multiple Choice

Table 7-15

-Refer to Table 7-15. You and your best friend want to hire a professional photographer to take pictures of your two families. The table shows the costs of the four potential sellers in the local photography market. You and your friend agree to offer $500 for each session. Who accepts the offer, and what is the total producer surplus in the market?

• A) LeBron and Kobe; $500
• B) Kevin and Steve; $500
• C) LeBron and Kobe; $300
• D) Kevin and Steve; $150

Recognize the role and definition of investment in the context of economic theory.

Calculate and interpret the effect of changes in disposable income on consumption, investment, and saving.

Grasp the concepts of marginal propensity to consume (MPC) and save (MPS), and their relevance to economic behavior.

Understand how savings, investment, and income interrelate.