Assume There Are Three Hardware Stores, Each Willing to Sell

question 50

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 $10:

• A) Bob's Hardware would lose $5 of producer surplus.
• B) producer surplus would fall by $5 for each producer.
• C) Bob's Hardware would no longer sell hammers.
• D) total producer surplus would fall by $15.

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Definitions:

Conservation

The principle in cognitive development where a child learns that quantity, mass, and volume remain the same despite changes in form or appearance.

Baseball Cards

Collectible items featuring baseball players and often used for trading, these cards contain player statistics and photographs.

Batting Average

A statistical measure in baseball and cricket that represents the ratio of a player's hit compared to their at-bats.

Class Inclusion

A cognitive operation that allows a person to see that some classes or sets of objects are subsets of a larger class, and to understand the relationship between the whole and its parts.