Suppose a Consumer Is Willing to Pay $20 for One

question 303

Multiple Choice

Suppose a consumer is willing to pay $20 for one good X, $10 for a second, and $5 for a third, and the market price is $4. The consumer surplus is:

• A) $16.
• B) $6.
• C) ​$1.
• D) ​$23.

---

Definitions:

Psychological Principles

Psychological principles refer to fundamental theories and established facts derived from psychology that explain and predict behaviors and mental processes.

Social Behaviors

Actions and reactions of individuals or groups in response to external or internal stimuli, influenced by cultural, social, and psychological factors.

George Homans

An influential American sociologist known for developing social exchange theory, which explains social change and stability as a process of negotiated exchanges between parties.

Desirable Rewards

Refers to benefits or incentives that are sought after by individuals or groups in various contexts, such as workplaces, social settings, or educational environments.