When the Smiths Were Shopping for Their Present Home, the Asking

question 149

Multiple Choice

When the Smiths were shopping for their present home, the asking price from the previous owner was $250,000. The Smiths had decided they would pay no more than $245,000 for the house. After negotiations, the Smiths actually purchased the house for $239,000. Therefore, the previous owner earned a producer surplus of

• A) $250,000.
• B) $5,000.
• C) $11,000.
• D) an unknown amount given the information provided in the question.

---

Definitions:

Yearning

A deep longing or desire, often for something or someone that is absent or lost.

Western Society

Societal structures and cultures primarily found in Europe, North America, and other regions influenced by European colonization and values.

Mourning

The process of experiencing and expressing deep sorrow and grief, usually following the death of a loved one.

Bowlby's Four Phases

A theory by John Bowlby describing the four stages of a child's attachment response: pre-attachment, attachment in the making, clear-cut attachment, and formation of reciprocal relationships.