Class Date Exam II: Review WTP 40. Abraham drinks Mountain Dew. He can buy as many cans of Mountain per can. On a particular day, he is willing to pay S0.95 for the first can, $0.80 for the second can, S0.60 third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is a. $0.50. b. $0.60. c. $0.70. Dew as he wishes at a price d. $1.00 Scenario 8-2 Roland mows Karla's lawn for $25. Roland's opportunity willingness to pay Roland to mow her lawn is $28. cost of mowing Karla's lawn is $20, and Karla's 41. Refer to Scenario 8-2. Assume Roland is required to pay a tax of $10 each time he mows a lawn. Which of 一一 the following results is most likely? a. Roland and Karla still can engage in a mutually-agreeable trade. b. Karla now will decide to mow her own lawn, and Roland will decide it is no longer in his interest to mow Karla's lawn. c. Roland still is willing to mow Karla's lawn, but Karla will decide to mow her own lawn. d. Karla still is willing to pay Roland to mow her lawn, but Roland will decline her offer. Table 7-14 ost eller eBron obe $600 5o S

Class Date Exam II: Review WTP 40. Abraham drinks Mountain Dew. He can buy as many cans of Mountain per can. On a particular day, he is willing to pay S0.95 for the first can, $0.80 for the second can, S0.60 third can, and $0.40 for the fourth can. Assume Abraham is rational in deciding how many cans to buy. His consumer surplus is a. $0.50. b. $0.60. c. $0.70. Dew as he wishes at a price d. $1.00 Scenario 8-2 Roland mows Karla's lawn for $25. Roland's opportunity willingness to pay Roland to mow her lawn is $28. cost of mowing Karla's lawn is $20, and Karla's 41. Refer to Scenario 8-2. Assume Roland is required to pay a tax of $10 each time he mows a lawn. Which of 一一 the following results is most likely? a. Roland and Karla still can engage in a mutually-agreeable trade. b. Karla now will decide to mow her own lawn, and Roland will decide it is no longer in his interest to mow Karla's lawn. c. Roland still is willing to mow Karla's lawn, but Karla will decide to mow her own lawn. d. Karla still is willing to pay Roland to mow her lawn, but Roland will decline her offer. Table 7-14 ost eller eBron obe $600 5o S

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter5: Consumer Choice: Individual And Market Demand

Section: Chapter Questions

Problem 3DQ

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