Table 4-5 -Refer to Table 4-5. the Table Above Lists the Highest

question 128

Multiple Choice

Table 4-5

-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20,

• A) only three tickets will be sold.
• B) consumer surplus decreases from $48 to $24.
• C) consumer surplus increases from $0 to $62.
• D) everyone will buy a ticket.

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Definitions:

Weighted-Average Number

A calculation that takes into account the varying degrees of importance of the numbers in a data set, used to find a kind of average that considers weight.

Preferred Stock

A type of stock that grants holders priority for dividend payments and, in some cases, priority in asset liquidation over common stockholders.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock (paid-in capital), donated capital and retained earnings.

Cash Dividend

A payment made by a company out of its earnings to shareholders, usually in the form of cash.