Use the Following to Answer Questions

question 83

Multiple Choice

Use the following to answer questions:
Figure: Price Ceilings and Consumer Surplus
-(Figure: Price Ceilings and Consumer Surplus) Refer to the figure. There is a price ceiling of $20. What is the value of consumer surplus if all the goods are allocated randomly?

• A) $120
• B) $180
• C) $80
• D) None of the answers are correct.

---

Definitions:

Pyramid-Shaped Hierarchy

A visual model of an organization where each level represents a rank, with the highest power at the top tapering down to wider levels of lesser power.

Physiological Needs

Basic requirements vital to human survival, such as air, food, water, and shelter, often represented as the foundation in Maslow's hierarchy of needs.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow positing that people are motivated to achieve certain needs and that some needs take precedence over others, from basic physiological needs to self-actualization.