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 Dave’s Consumer Surplus on DVD Rentals per Week \text { Dave's Consumer Surplus on DVD Rentals per Week }

Question 100

Multiple Choice

 Dave’s Consumer Surplus on DVD Rentals per Week \text { Dave's Consumer Surplus on DVD Rentals per Week }
 Number of DVDs  rented per week  Amount D ave is willing to  pay to rent this DVD ($)   Dave’s consumer surplus  on each DVD rental if price  is $5 each  1st 10.00 2nd 8.00 3rd 6.504 th 5.505 th 5.00 6th 4.507 th 4.25\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Number of DVDs } \\\text { rented per week }\end{array} & \begin{array}{c}\text { Amount } D \text { ave is willing to } \\\text { pay to rent this DVD (\$) }\end{array} & \begin{array}{c}\text { Dave's consumer surplus } \\\text { on each DVD rental if price } \\\text { is } \$ 5 \text { each }\end{array} \\\hline \text { 1st } & 10.00 & \\\hline \text { 2nd } & 8.00 & \\\hline \text { 3rd } & 6.50 & \\\hline 4 \text { th } & 5.50 & \\\hline 5 \text { th } & 5.00 & \\\hline \text { 6th } & 4.50 & \\\hline 7 \text { th } & 4.25 & \\\hline\end{array}
 TABLE 6-2 \text { TABLE 6-2 }
-Refer to Table 6- 2. Assuming Dave maximizes his utility, his consumer surplus (in dollars) on each DVD rental in order from 1 through 7 is as follows:


A) 5.00, 3.00, 1.50, 0.50, 0, 0, 0.
B) 10.00, 18.00, 24.50, 30.00, 35.00, 39.50, 43.75.
C) 5.00 on all units.
D) 10.00, 8.00, 6.50, 5.50, 5.00, 4.50, 4.25.
E) 0 on all units.

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