ECON 323 Quiz: ECON 323 TAMU Quiz 05
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An increase in the price of gas reduces consumer surplus because a. b. c. d. e. pay more for gallons of gas you buy buy less gas buy more gas both a. and b. both a. and c. If the interest rate rises, the present value of lifetime income a. b. c. d. e. rises falls stays the same either a. or c. either b. or c. If the demand function for apples is p = 10 - q, how much consumer surplus does the consumer gain when the price of the apples is 5? a. b. c. d. e. For demand curve p = 10 - 2q, how much would consumer surplus decline if the price increased from to ? a. b. Karen has income of m = m = ,000 in each period and faces an interest rate of r = 20%. The present value of her lifetime income is: a. b. c. d. e.
