Choose the best answer?

Question

3. Consumer surplus is:

a. The surplus income available with a consumer after purchasing all the

goods.

b. The difference between the maximum amount a consumer is willing to

pay for a good and the actual amount paid at the time of purchasing

the good.

c. The surplus amount left after purchasing all normal goods.

d. The surplus amount left after purchasing all the inferior goods.

4. Which of the following statements is an example of positive network externality

?

a. People eat hotdogs because they like the taste and hotdogs are filling.

b. As soon as B discovered that everyone else was buying hotdogs, he

stopped buying them.

c. A wouldn't think of buying hotdogs until she realized that all her friends

were eating them.

d. When personal income grew by 10%, hotdog sales fell

Answer 1

c for both?