Table 16-3 Julie Plans to Start a Pet-Sitting Service. She Surveyed Her

question 18

Multiple Choice

Table 16-3

Julie plans to start a pet-sitting service. She surveyed her neighborhood to determine the demand for this service. Assume that each person surveyed demands only one hour of pet sitting services per period. Table 16-3 above shows a portion of her survey results.
-Refer to Table 16-3.Suppose Julie's marginal cost of providing this service is constant at $7 and she charges each customer according to his or her willingness to pay instead of a uniform price of $7.Which of the following statements is true?

• A)Julie is worse off because the demand for her services is reduced.
• B)Julie has converted the consumer surplus (from a uniform price)into economic profit.
• C)Julie's customers are better off because their consumer surplus has increased.
• D)Julie's has converted the producer surplus (from a uniform price)into consumer surplus.

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Definitions:

Perception

The method through which living beings decipher and structure sensory information to create a significant perception of their surroundings.

Luxuries

Goods or services that are considered non-essential but desirable and are often associated with high quality and a high price.

Necessities

Essential needs required for basic human survival and well-being, such as food, water, and shelter.

Entering U.S.College Students

Entering U.S. college students refers to individuals beginning their undergraduate education in colleges or universities in the United States.