Suppose That Irina Is Prepared to Pay a Maximum of $2.40

question 95

Multiple Choice

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one.
-Refer to the above information to answer this question.If the price of cranberry juice is 80 cents per glass,how many glasses will she purchase?

• A)3 glasses.
• B)8 glasses.
• C)9 glasses.
• D)10 glasses.
• E)Cannot be determined.

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Definitions:

Excludable

A property of a good whereby it is possible to prevent individuals from enjoying the good unless they pay for it.

Public Good

A good or service offered to every member of a society for free, provided by either governmental bodies or private entities or individuals, without seeking to make a profit.

Demand Curve

An illustrated chart that displays the connection between a product's price and the amount consumers are willing to buy at those price levels.

Individual Demand

The amount of a product or service that a single consumer is willing and able to purchase at various prices, holding all else constant.