This Table Refers to Five Possible Buyers' Willingness to Pay

question 11

Multiple Choice

This table refers to five possible buyers' willingness to pay for a take-away meal. ?

$\begin{array}{|l|l|}\hline \text { Buyer } & \begin{array}{l}\text { Willingness To } \\\text { Pay }\end{array} \\\hline \text { David } & € 8.50 \\\hline \text { Laura } & € 7.00 \\\hline \text { Megan } & € 5.50 \\\hline \text { Mallory } & € 4.00 \\\hline \text { Audrey } & € 3.50 \\\hline\end{array}$
?
Refer to the table above. Which of the following is not true?
?

• A) At a price of €9.00, no buyer is willing to purchase take-away meal.
• B) At a price of €5.50, Megan is indifferent between buying a case of take-away meal and not buying one.
• C) At a price of €4.00, total consumer surplus in the market will be €9.00.
• D) All of the above are correct.

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Definitions:

Yield Curve

A line that plots the interest rates, at a set point in time, of bonds having equal credit quality but differing maturity dates.

Liquidity Premiums

Additional yield that investors demand for holding securities that are not easily sold at their fair market value without a significant price concession.

Callable Bonds

Bonds that can be redeemed by the issuer prior to their maturity date at a predetermined call price.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put money into a particular security or project.