Tina Makumbi Imports Sesame Oil from Ethiopia and Sells to a Market

question 90

Multiple Choice

Tina Makumbi imports sesame oil from Ethiopia and sells to a market that has a downward sloping demand curve.The demand curve indicates that some consumers are willing to pay $1.50 or more per pound for the first few pounds, but every consumer gets to buy at the market clearing price of $0.50 per pound.The difference between the most that consumers would pay and the actual amount they do pay is called

• A)exporter surplus
• B)trade balance
• C)producer surplus
• D)consumer equilibrium
• E)consumer surplus

---

Definitions:

Entropy

A measure of disorder or randomness in a closed system, often used in physics and information theory.

Equivalence

The state of being equal in value, function, or meaning.

Psychic Value

The importance or significance that an individual attaches to objects, events, or relationships as per their emotional or unconscious investment.

Desires

Strong feelings of wanting or wishing for something to happen or be the case.