Figure 7-1 -Refer to Figure 7-1.If the Price of the Good Is

question 456

Multiple Choice

Figure 7-1
-Refer to Figure 7-1.If the price of the good is $80,then consumer surplus amounts to

• A) $110.
• B) $135.
• C) $160.
• D) $185.

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Definitions:

Market System

An economic system in which economic decisions and the pricing of goods and services are guided by the interactions of citizens and businesses.

Goods and Services

The output produced by an economy, including tangible products (goods) and intangible activities (services) that fulfill the needs or wants of consumers.

Profitable

A financial status where the income earned is greater than the expenses incurred, leading to a positive net income.

Invisible Hand

A concept proposed by Adam Smith, describing the self-regulating nature of the marketplace that guides individuals to unintentionally promote societal benefits through their own self-interest.