Consumer Surplus Is

question 26

Multiple Choice

Consumer surplus is

• A)the difference between the market price of the good and the cost of the good.
• B)greater on the last unit sold than on the first unit sold.
• C)greater on the first unit sold than on the last unit sold.
• D)equal to price multiplied by quantity sold.
• E)equal to the area below the demand curve.

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Definitions:

Income Statement

A financial document that provides a summary of a company's revenues, expenses, and profits/losses over a specific period.

Long-Term Note Payable

A loan or debt with a repayment period that extends beyond one year, often used for significant business investments.

Mortgage Payable

A long-term liability representing borrowed funds secured by the pledge of property, to be repaid within a specified period.

Installment Payment

A method of paying for goods or services over a period of time in regular, scheduled payments.