If Bill Is Willing to Pay $10 for One Good

question 327

Multiple Choice

If Bill is willing to pay $10 for one good X, $8 for a second, and $6 for a third, and the market price is $5, then Max's consumer surplus is:

• A) $24.
• B) $18.
• C) ​$9.
• D) ​$6.

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Definitions:

Prime Rate

The interest rate that commercial banks charge their most creditworthy customers, generally large corporations.

Unsecured Promissory Note

A type of debt instrument that doesn’t require collateral but is backed only by the borrower's promise to pay the lender back.

Cash Conversion Cycle

The time it takes for a company to convert its investments in inventory into cash flows from sales.

Inventory System

An inventory system is a mechanism for tracking the sale, purchase, and storage of goods, facilitating efficient management and control of inventory.