If Sam Is Willing to Pay $50 for One Unit

question 70

Multiple Choice

If Sam is willing to pay $50 for one unit of good X, $30 for a second, $20 for a third, $8 for a fourth, and the market price is $10, then Sam's consumer surplus is:

• A) $40 and he buys 1 unit of good X.
• B) $60 and he buys 2 units of good X.
• C) $70 and he buys 3 units of good X
• D) $68 and he buys 4 units of good X.

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Definitions:

Security Returns

Represents the profit or loss generated on an investment over a particular period of time.

Economic Forces

Factors such as inflation, interest rates, economic growth, and policies that influence the operation of the economy and impact businesses and investments.

Index Model

A financial model that describes the market or a segment of the market, typically used to predict the return or price of assets in comparison to the market as a whole.

Standard Deviation

A statistical measure of the dispersion or spread of a set of values, used in finance to gauge the volatility of an investment.