Suppose There Are Three Identical Vases Available to Be Purchased

question 2

Multiple Choice

Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay R300 for one, buyer 2 is willing to pay R250 for one, and buyer 3 is willing to pay R200 for one. If the price is R250, how many vases will be sold and what is the value of consumer surplus in this market?

• A) Three vases will be sold and consumer surplus is R800.
• B) One vase will be sold and consumer surplus is R50.
• C) One vase will be sold and consumer surplus is R300.
• D) Three vases will be sold and consumer surplus is R0.
• E) Two vases will be sold and consumer surplus is R50.

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Definitions:

Eyewitness Testimony

The account a bystander or victim gives in court, detailing what that person observed during the occurrence of a specific event.

Human Memory

The cognitive process that allows individuals to encode, store, and retrieve information over time.

Accuracy

describes the closeness of measurements, observations, or assessments to the true value or standard.

Hippocampal Region

A part of the limbic system, which includes the hippocampus itself and the underlying cortical areas, involved in the formation of semantic memories.