The Number of "Gore in 2004" Buttons Demanded on a Certain

question 2

Multiple Choice

The number of "Gore in 2004" buttons demanded on a certain university campus is given by D(p) = 100 - p, where p is the price of buttons measured in pennies.The supply function is S(p) = p.The current administration manages to enforce a price ceiling of 40A2 per button.The effect on net consumer's surplus is

• A)an increase of $5.50.
• B)an increase of $3.50.
• C)no change.
• D)a decrease of $3.50.
• E)a decrease of $5.50.

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Definitions:

Remedy

A means of counteracting or eliminating something undesirable, often referring to a treatment for a disease or a solution to a problem.

Positive Wording

The practice of choosing words that reflect a positive, constructive attitude instead of a negative one.

Extended Warranty

A service contract that extends the warranty period of a product beyond what is offered by the manufacturer.

Replacement Parts

Components that are substituted for the original parts of an item, often due to damage or wear.