Consider the Following Scenario to Answer the Following Questions: the Varsity,located

question 70

Multiple Choice

Consider the following scenario to answer the following questions: The Varsity,located in downtown Atlanta,is the world's largest drive-in restaurant.Located near the Georgia Tech campus,the drive-in attracts two distinct types of customers-college students and visitors to Atlanta.The owners are considering offering a student discount of $1 off their combo meal,which is regularly priced at $9.There are 5,000 students interested in purchasing a combo meal,with a maximum willingness to pay of $8.There are 5,000 visiting customers interested in purchasing the combo meal,with a maximum willingness to pay of $9.Assume that each customer,at most,will purchase a single meal and the marginal cost is $5.
-What is the difference in the amount of total consumer surplus if the Varsity offers the combo meal at the single price of $8 per combo meal instead of the previous single price of $9 per combo meal?

• A) no change
• B) $16,500 decrease
• C) $15,000 decrease
• D) $10,000 increase
• E) $5,000 increase

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Definitions:

Sexual Fantasies

Imagined sexual scenarios that arouse the individual, which may or may not be acted upon in real life.

Masturbation Technique

Methods or practices individuals use for self-stimulation to achieve sexual pleasure.

Oral Sex

Sexual activity involving stimulation of the genitalia by the use of the mouth, lips, or tongue.

Leonore Tiefer

A sexologist and psychologist known for her work on women's sexuality and critiques of the medicalization of sex.