Use the Following to Answer Questions

question 30

Multiple Choice

Use the following to answer questions :
-(Table: The Demand for Chocolate-Covered Peanuts) Look at the table The Demand for Chocolate-Covered Peanuts. Barbara demands 20 bags of chocolate-covered peanuts when the price of each bag is:

• A)$0.90.
• B)$0.80.
• C)$0.70.
• D)$0.60.

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Definitions:

Price

The amount of money required to purchase a good or service; it acts as a signal between sellers and buyers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.

Willingness to Pay

The maximum amount an individual is prepared to spend to acquire a good or service or avoid something undesirable.

Consumer Surplus

The gap between what consumers are prepared to pay for a product or service and what they end up spending.