Which of the Following Is an Example of Consumer Surplus

question 345

Multiple Choice

Which of the following is an example of consumer surplus?

• A) Jose buys a hamburger for $2 and tells you he would not have paid a penny more.
• B) John believes the price he paid for his computer was too high.
• C) Mary buys a paper tablet for $2 and finds the same good at another store for $1.50.
• D) Sue would have paid $15 for a new compact disc but paid only $10.
• E) Anne finds a mountain bike for which she is willing to pay a maximum of $550 and the price of the bike is $600.

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Definitions:

Cash

The most liquid form of financial asset, used to settle debts and transactions.

Contributions

In accounting, refers to the amounts paid into a company by the owners or shareholders for equity.

Joint Operation

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task, where each participant is jointly responsible for profits, losses, and costs.

Supply Of Services

The action of providing services to consumers or businesses, which can involve physical labor or intellectual tasks.