If You Receive a Gift Whose Market Price Is $20

question 274

Multiple Choice

If you receive a gift whose market price is $20, but you consider it to be worth only $10, then

• A)there is a $10, or 50 percent, value gain.
• B)there may or may not be a value loss.
• C)there is a $10, or 50 percent, value loss.
• D)you can be relatively certain the giver was a sibling or other close relative.

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Definitions:

Market Demand Curve

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at different prices.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price point, at a specific time.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.