Suppose Sam Buys a Good for $100 at a Yard

question 29

Multiple Choice

Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:

• A) $100.
• B) $175.
• C) $25.
• D) equal to the deadweight loss.

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Definitions:

External World

The outer physical reality that exists independently of individual perceptions and thoughts.

Internal Forces

Forces that act within an object or system, affecting its structure and performance without external influence.

Punishment

An unpleasant stimulus that suppresses behavior.

Teasing

The act of making fun of or attempting to provoke a person or animal in a playful or unkind way.