Assume There Are Three Hardware Stores, Each Willing to Sell

question 77

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 $11:

• A) total producer surplus would fall by $4.
• B) producer surplus would fall by $4 for each producer.
• C) House Depot's producer surplus would fall by $4.
• D) total producer surplus would fall by $8.

---

Definitions:

Raw Scores

The original, unmodified scores obtained directly from a test or assessment before any adjustments or conversions are applied.

Normal Curve

A bell-shaped curve that represents the distribution of scores on many psychological tests where most occurrences take place in the middle of the distribution.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Raw Scores

The original, unaltered scores obtained directly from a test or assessment without any normalization or transformation.