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A Consumer's Demand for CDs Can Be Represented by a Line

Question 117

Multiple Choice

A consumer's demand for CDs can be represented by a line with slope -b and intercept a. If the current price of CDs is $P, then the ratio of consumer surplus to total expenditures on CDs equals


A) (a - P) (a - bP) .
B) 1/2(a - P) (a - bP) .
C) D(a - bP) .
D) (a - P) /P.
E) (a/b - P) /(2P) .

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