Assume There Are Three Hardware Stores, Each Willing to Sell

question 141

Multiple Choice

Assume there are three hardware stores, each willing to sell one standard model hammer in a given time period. House Depot could offer a hammer for a minimum of $7. Lace Hardware could offer a hammer for a minimum of $10. Bob's Hardware could offer a hammer for a minimum of $13.If the market price of hammers decreased from $15 to $13, which of the following can be said with certainty?

• A) Bob's Hardware would no longer participate in the market.
• B) Total producer surplus would decrease.
• C) Only Bob's Hardware would experience a drop in producer surplus.
• D) Bob's Hardware would continue to participate in the market.

---

Definitions:

Survey Method

A research method that involves collecting data from a predefined group of respondents to gather information and insights on various topics.

Questionnaire

A set of questions designed to gather information from respondents for research, feedback, or assessment purposes.

Buying Habits

Patterns or tendencies that consumers exhibit when purchasing products or services, often influenced by various factors such as culture, personal preferences, and economic conditions.

Survey Method

A research technique that involves asking a large group of people questions about their opinions, behavior, or knowledge.