Jennifer Buys a Piece of Costume Jewelry for $33, for Which

question 51

Multiple Choice

Jennifer buys a piece of costume jewelry for $33, for which she was willing to pay $42. The minimum acceptable price to the seller, Nathan, was $30. Jennifer experiences a

• A) a consumer surplus of $12, and Nathan experiences a producer surplus of $3.
• B) a producer surplus of $9, and Nathan experiences a consumer surplus of $3.
• C) a consumer surplus of $9, and Nathan experiences a producer surplus of $3.
• D) a producer surplus of $9, and Nathan experiences a producer surplus of $12.

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Definitions:

Contractual Capacity

Contractual capacity refers to the legal ability of a party to enter into a contract, generally requiring them to be of sound mind and of legal age.

Binding Agreement

A contract or deal between two or more parties that is legally enforceable in a court of law.

Legal Ability

The capability or qualification to engage in a legal task or to perform legal duties, often requiring specific knowledge or licensing.

Statutory Law

Laws that have been formally written and passed by legislative bodies.