If a Buyer's Reservation Value for a Good Is $15

question 111

Multiple Choice

If a buyer's reservation value for a good is $15 and the price at which he purchases the good is $8,his consumer surplus is ________.

• A) $7
• B) $1.8
• C) −$7
• D) $120

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Definitions:

Reference Point

A basis or standard for evaluation, assessment, or comparison; a criterion.

Communication

The transfer of information, ideas, emotions, or instructions between individuals or groups using verbal, non-verbal, or written mediums.

Physical Space

The tangible, real-world environment and area around individuals, which can affect behavior and interactions.

People

Human beings, either individually or collectively, considered within a social or cultural context.