Suppose a Consumer Is Willing to Pay $20 for One

question 104

Multiple Choice

Suppose a consumer is willing to pay $20 for one unit of good X, $10 for a second, and $5 for a third, and the market price is $4. The consumer surplus is:

• A) $16.
• B) $6.
• C) $1.
• D) $23.

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Definitions:

Sustainable Growth

Economic development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Ecological Economists

Experts who study the relationship between ecological systems and economic systems, often focusing on sustainability and environmental impacts of economic decisions.

Environmental Economists

Experts who study the economic impacts of environmental policies and the cost-benefit analyses of preserving or degrading the environment.

Neoclassical Economics

An economic theory that focuses on supply, demand, and the price mechanism as the driving forces behind production, distribution, and consumption of goods and services.