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

---

Definitions:

Mean

The average value of a set of numbers, calculated by adding all the numbers together and dividing by the count of the numbers.

Categorical Data

Data that can be divided into specific groups or categories based on qualitative characteristics.

Variances

A measure of the dispersion indicating how far individual numbers in a dataset are from the mean.

Bimodal Distribution

A probability distribution with two different modes or peaks, representing two prevalent outcomes or characteristics in a dataset.