You Have Driven 800 Miles on a Vacation and Then

question 80

Multiple Choice

You have driven 800 miles on a vacation and then you notice that you are only 15 miles from an attraction you hadn't known about,but would really like to see.In computing the opportunity cost of visiting this attraction you had not planned to visit,you should include

• A)both the cost of driving the first 800 miles and the next 15 miles.
• B)the cost of driving the first 800 miles,but not the cost of driving the next 15 miles.
• C)the cost of driving the next 15 miles,but not the cost of driving the first 800 miles.
• D)neither the cost of driving the first 800 miles nor the cost of driving the next 15 miles.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive.

Perfectly Inelastic

Describing a situation where the quantity demanded or supplied does not change regardless of changes in price.

Market Supply

The total quantity of a specific good or service that is available for purchase in the market by all suppliers at various price levels.

Market Demand

The total demand for a product or service across all consumers in a market at a given price level and time.