Suppose Gizmo Inc

question 53

Multiple Choice

Suppose Gizmo Inc. is willing to sell one gizmo for $10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20. What is Gizmo Inc.'s producer surplus?

• A) $56
• B) $24
• C) $20
• D) $10

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Definitions:

Elastic Artery

A type of artery that contains a high proportion of elastic tissue, allowing it to stretch in response to each pulse and help maintain blood pressure.

Muscular Artery

A type of medium-sized artery that has a thicker muscular layer, which allows for regulation of blood flow by contracting or dilating.

Arteriole

A small diameter blood vessel in the microcirculation that extends and branches out from an artery and leads to capillaries.

Ascending Aorta

Part of the aorta from which the coronary arteries arise.