If the Demand Function for Apples Is P = 1

question 18

Multiple Choice

If the demand function for apples is P = 1 - Q, how much consumer surplus does the consumer gain when the price of the apples equals 5?

• A)25
• B)5
• C)20
• D)12.5

---

Definitions:

Future Benefits

Expected advantages or gains in the future, often considered in decision-making processes or investment analysis.

Retained Earnings

Profits that a company keeps after dividends have been paid out to shareholders, used for reinvestment in the business or to pay down debt.

Capital

Resources made and used by people to produce and distribute goods and services; includes tools, machinery, and buildings.

Interest Rates

Charges applied on borrowed money or earned through deposits, varying according to the type, term, and risk associated with the financial product.