Elvis Values the First Gravy Sandwich at $5, the Second

question 128

Multiple Choice

Elvis values the first gravy sandwich at $5, the second at $4.50, the third at $4.If he buys three for $4 each, his consumer surplus is

• A)$5
• B)$4
• C)$1.50
• D)$9.50
• E)$12

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Definitions:

Preferred Stock

A type of stock that typically pays dividends at a fixed rate and has priority over common stock in terms of dividend payments and assets in the event of liquidation.

Ex-dividend Date

The date on which the buyer of a stock is not entitled to the next dividend payment. After this date, the stock sells without its dividend rights.

Declaration Date

The specific date on which a company's board of directors announces its next dividend payment.

Record Date

The record date is a set date when a company determines its shareholders who are eligible to receive dividends or participate in corporate actions.