QUESTION6 The opportunity cost of a choice is O the difference between the benef
ID: 1132629 • Letter: Q
Question
QUESTION6 The opportunity cost of a choice is O the difference between the benefits and costs of the choice O the value of the opportunities lost. sometimes positive or negative 0 the net value of the opportunities gained. QUESTION7 If the price of milk rose to S6 per gallon, consumers would purchase fewer gallons of milk than if the price were $2 per gallon. If the price of chocolate ellto 1 50 per piece, consumers would purchase more chocolate than if the price were $5 per piece. These relationships illustrate the Oa. difference between substitute and complement goods. O b. difference between normal and inferior goods. Oc law of supply. O d. law of demand. QUESTION 8 Suppose that the demand for good Y is given by the equation: Q- 200- 2Py we can conclude that: 3Px where Px is the price of good Xand Py s the price of good Y. Based on this Good X and good Y are substitute goods Good X and good Y are complementary goods O When the price of X goes up the quatity demanded of Y goes down When the price of X goes down the quatity demanded of Y goes up
Explanation / Answer
6.
The opportunity costs can be defined as the lost units of output of another goods for producing an additional unit of output of a good.
It means the opportunity cost of choice is the value of the opportunity lost.
Hence the option second is the correct answer.
option second ; the value of the opportunity lost.
7.
Since with the increase in the price of milk, the consumers consumes less quantity of milk and vice-versa. Another consumers consume more quantity of chocolates with the decrease in the price of chocolates. So all this example shows the inverse relationship between price and quantity demand.
The law of demand also shows inverse relationship between price and quantity demand and others things remaining same.
Both are the example of law of demand.
Hence option d is the correct answer.
Option d; law of demand.
8.
The demand for good Y are;
QdY= 200 - 2PY +3Px
When the relationship between price of a good and quantity demand of another good is positive, then this is example of substitute goods.
Since quantity demand of good Y and price of good X is positively related, so good X and good Y are substitute goods.
Hence option First is the correct answer.
9.
Since the consumer surplus is the difference between market price and consumer maximum willingness to pay for the goods.
Market price = 1200
Willingness to pay
Adam= 1459
Adam consumer surplus= Willingness to pay - Market price
=1459 -1200
=$259
Willingness to pay
Sheera = 1320
Sheera consumer surplus= Willingness to pay - Market price
=1320 -1200
=$120
Willingness to pay
Orko= 1201
Orko consumer surplus= Willingness to pay - Market price
=1201-1200
=$1.
Total consumer surplus = Surplus of ( Adam + Sheera + Orko)
=259+120+1
=$380
Hence option first is the correct answer.
# According to chegg guidelines i have solved first four questions.
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