Sir Plus Has a Demand Function for Mead That Is

question 19

Multiple Choice

Sir Plus has a demand function for mead that is given by the equation D(p) = 100 - p.If the price of mead is $60, how much is Sir Plus's net consumer's surplus?

• A)$40
• B)$800
• C)$1,600
• D)$400
• E)$3,900

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Definitions:

Dividends

Payments made by a corporation to its shareholders from the company's profits or reserves.

Corporate Penalty Taxation

The imposition of taxes on corporations for violating laws or regulations, distinct from regular taxation on profits.

Closely Held Corporation

A business corporation that is owned by a small number of shareholders; its shares are not publicly traded.

Limited Liability

is a legal structure where the owners' personal liability is restricted to the amount they invested in the business, protecting personal assets from business debts and obligations.