At the Current Price of a Good,Al's Consumer Surplus Equals

question 37

Multiple Choice

At the current price of a good,Al's consumer surplus equals 15,and Ben's consumer surplus equals 15.By charging a two-part tariff,a monopolist could increase his profit by

• A)8.
• B)16.
• C)15.
• D)30.

---

Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specified time period.

Substitutes

Products or services that can serve as replacements for each other, satisfying the same customer need or want.

Price Elasticity

A calculation that expresses how demand for a certain product varies in reaction to its pricing shifts.

Luxury

Products or services viewed as luxurious and not necessary, frequently linked with premium quality and a high cost.