Question

a laptop computer is an examlle of which of the following factors of production
labor
entrepreneurship
land
energy capital

the price of A rises and the demand curve for B shifts to the left. we can conclude that
a and b are complements
a is an inferior good and b is normal good
a and b are substitute
a is normal good and b js an jnferior good
a and b are unrelated

luke likes cookies. he can eat as mny cookies he likes at a price of 1.75. during break he is willing to pay 4.25 for the first cookie, 3 for second , 2 for third and 1 for fourth. what is his consumer surplus from buying and eating cookies.

Answer 1

Ans: enenrgy capital

Explanation:

A laptop computer is an example of energy capital factors of production.

Ans: a and b are complements

Explanation:

When the cross elasticity of deamand is negative , then the two related goods are complementary. It means when the price of one good increases , then the demand for other related good will decrease and vice versa.

On the other hand , when the cross elasticity of demand is positive , the two related goods are substitute.

Ans: His consumer surplus = $4.00

Explanation:

Consumer surplus = Willingness to pay - Actually pays

Consumer surplus from 1st cookie = $4.25 - $1.75 = $2.50

Consumer surplus from 2nd cookie = $3.00 - $1.75 = $1.25

Consumer surplus from 3rd cookie = $2.00 - $1.75 = $0.25

So his total consumer surplus = $2.50 + $1.25 + $0.25 = $4.00