Table 4-2 -Refer to Table 4-2.The Table Above Lists the Highest Prices

question 51

Multiple Choice

Table 4-2

-Refer to Table 4-2.The table above lists the highest prices five consumers are willing to pay for a concert ticket.If the price of one ticket falls from $50 to $20

• A)only three tickets will be sold.
• B)consumer surplus decreases from $48 to $24.
• C)consumer surplus increases from $0 to $62.
• D)everyone will buy a ticket.

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or a week.

Capital

Refers to financial assets or the financial value of assets, such as cash and investments, as well as physical assets like machinery or buildings, used in the production of goods and services.

Fixed Proportions

A production scenario where inputs are used in a constant ratio, regardless of the level of output.

Coefficient of Elasticity

A measure used in economics to quantify how responsive the quantity demanded or supplied of a good is to a change in one of its determinants, such as price.