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The selection process for hiring the assistant to the mayor of a large city includes giving the finalists three hypothetical crisis scenarios. One deals with a terrorist threat at a sporting event, another deals with a plane crash at the airport, and the third deals with a major earthquake. Each candidate must describe his or her approach to handling the crisis, which will be recorded and evaluated by a panel. This best exemplifies a(n) _____.
Maximum Price
A price ceiling, often set by regulatory bodies, above which a particular good or service cannot be sold, intended to protect consumers.
Consumer Surplus
The divergence between the price customers are willing to pay and the price they actually pay for a good or service.
Willingness to Pay
The maximum amount an individual is prepared to spend to acquire a good or service or to avoid something undesirable.
Consumer Surplus
The gap between the amount consumers are prepared to spend on a good or service and the actual price they pay, signifying consumers' advantage.
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