Figure 7-14 -Refer to Figure 7-14.If Total Surplus Is $750 and Consumer

question 220

Multiple Choice

Figure 7-14

-Refer to Figure 7-14.If total surplus is $750 and consumer surplus is

• A) $500, then the price of the good is $200.
• B) $450, then the price of the good is $200.
• C) $600, then the price of the good is $175.
• D) $500, then the price of the good is $175.

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Definitions:

Operating Activities

Operating activities relate to the primary business activities of a company, such as production, distribution, and marketing, which generate revenue and expenses reflected in the income statement.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material, labor, and overhead costs.

Comparative Balance

A financial statement that presents the financial position of a company at two or more different points in time, for the purpose of evaluating financial health and performance.

Direct Method

A cash flow statement preparation approach that lists major categories of gross cash receipts and payments.