If DeShawn Only Pays $25,000 to Purchase a New Car

question 379

Multiple Choice

If DeShawn only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that

• A) DeShawn is an irrational consumer.
• B) The seller earned a $10,000 profit on the sale of the car.
• C) DeShawn reaped $10,000 of consumer surplus from the transaction.
• D) The seller received $10,000 worth of producer surplus on the transaction.

---

Definitions:

Persons

Individuals considered as separate and distinct entities, particularly in legal and philosophical contexts, with rights and responsibilities.

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Kant

A reference to Immanuel Kant, an 18th-century German philosopher known for his work in ethics, particularly his formulation of the Categorical Imperative.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief, behavior, or reasoning.