If the Minimum That the Smith Family Would Be Willing

question 142

Multiple Choice

If the minimum that the Smith family would be willing to sell their house for is $185,000, but they in fact sell it for $210,000, they will receive:

• A) producer surplus in the amount of $210,000.
• B) producer surplus in the amount of $25,000.
• C) consumer surplus in the amount of $210,000.
• D) consumer surplus in the amount of $25,000.

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Definitions:

Percentage

A fraction or ratio expressed as a part of 100.

Improper Fraction

A fraction where the numerator is greater than or equal to the denominator, indicating a value greater than or equal to one.

Unit Value

A measurement or quantity used as a standard or fixed amount in calculations or transactions.