Daniella buys a yogurt parfait every week. She is willing to…

Daniella buys a yogurt parfait every week. She is willing to pay $9 for the parfait, but the school store typically sells them for $4. Today, the store is running a sale and the price of yogurt parfaits is only $3. What is Daniella’s consumer surplus when she buys the parfait on sale?

Suppose that the inverse demand in a market is P = 100-2Q. A…

Suppose that the inverse demand in a market is P = 100-2Q. A firm’s marginal cost is constant and equal to $70. If the marginal cost increased from $70 to $80 and the firm is a monopoly, then it would raise its price _____. If the marginal cost increased from $70 to $80 and the firm operates in a perfectly competitive market, then the market price would _____.