Suppose You Buy an IPod for $100

question 88

True/False

Suppose you buy an iPod for $100. If your consumer surplus is $30, your willingness to pay is $70.

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Definitions:

Short-Run

A timeframe in economics where at least one input, such as capital or labor, is fixed, limiting the ability of businesses to adjust production immediately.

Tangent

In economics, it represents a point where two curves touch, often used in optimization problems to find equilibrium points.

Long Run

Refers to a period during which all factors of production and costs are variable, allowing full adjustment to production decisions.

Fixed Costs

Expenses that remain constant regardless of the amount of goods or services produced, like lease payments or wages.