Demand Schedule for Ski Tickets
TABLE 4-2
-Refer to Table 4-2.Total expenditure for ski tickets reaches a maximum at a price/quantity demanded combination of
A)$30/90.
B)$60/600.
C)$100/200.
D)$20/1000.
E)$80/400.

Question

Demand Schedule for Ski Tickets
  TABLE 4-2
-Refer to Table 4-2.Total expenditure for ski tickets reaches a maximum at a price/quantity demanded combination of
A)$30/90. 
B)$60/600. 
C)$100/200. 
D)$20/1000. 
E)$80/400.

Quizplus · Accepted Answer

To find the combination of price and quantity demanded that maximizes total expenditure, we need to multiply the price by the quantity demanded for each row and then sum up the products. 
For example, at a price of $30, the quantity demanded is 90, so the total expenditure is 30*90=$2,700. 
Doing this for all the combinations and finding the maximum, we get:
$20/1000 = $20,000
$30/90 = $2,700
$40/500 = $20,000
$50/400 = $20,000
$60/600 = $36,000
$70/300 = $21,000
$80/400 = $32,000
$90/200 = $18,000
$100/200 = $20,000
Therefore, the combination of price/quantity demanded that maximizes total expenditure is $60/600.