Suppose Katie,Kendra,and Kristen Each Purchase a Particular Type of Cell

question 140

Multiple Choice

Suppose Katie,Kendra,and Kristen each purchase a particular type of cell phone at a price of $80.Katie's willingness to pay was $100,Kendras's willingness to pay was $95,and Kristen's willingness to pay was $80.Which of the following statements is correct?

• A)For the three individuals together, consumer surplus amounts to $35.
• B)Having bought the cell phone, Kristen is better off than she would have been had she not bought it.
• C)Had the price of the cell phone been $95 rather than $80, Katie and Kendra definitely would have been buyers and Kristen definitely would not have been a buyer.
• D)The fact that all three individuals paid $80 for the same type of cell phone indicates that each one placed the same value on that cell phone.

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Definitions:

Discrimination

Unfair treatment of individuals based on race, gender, age, or other characteristics rather than on merit or qualifications.

Compensating Differential

Additional wage or benefit that compensates workers for unpleasant aspects of a job, such as risks or undesirable location.

Nonmonetary Characteristics

Aspects of a job or employment that are not related to the salary or wages. These include working conditions, job security, work-life balance, and other benefits.

Wages

The compensation paid to employees for their labor, typically calculated as an hourly rate or fixed salary.