If You Pay a Total of $10 to Purchase 2

question 91

Multiple Choice

If you pay a total of $10 to purchase 2 units of a good and you would have been willing to pay $14, then

• A)you receive a consumer surplus of $4.
• B)you experience a paradox of value.
• C)you receive a consumer surplus of $2.
• D)you do not have consumer sovereignty.
• E)your demand factor is $2 per unit.

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Definitions:

Price-Taker Market

A market structure where individual firms have no control over the price of their product, taking the market price as given.

Market Supply Curve

A graphical representation of the quantity of goods suppliers are willing to sell at different price levels.

Economic Profit

The disparity between a company's overall income and its comprehensive expenses, encompassing both out-of-pocket and implied costs.

Drought-Resistant Hybrid

A genetically modified or selectively bred plant variety that is able to survive and thrive in dry conditions.