​A Consumer Values a Car at $30,000 and a Producer

question 44

Multiple Choice

​A consumer values a car at $30,000 and a producer values the same car at $20,000.If the transaction is completed at $24,000,the transaction will generate:

• A)​No surplus
• B)$4,000 worth of seller surplus and unknown amount of buyer surplus
• C)$6,000 worth of buyer surplus and $4,000 of seller surplus
• D)​$6,000 worth of buyer surplus and unknown amount of seller surplus

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Definitions:

Additional Cost

Expenses incurred that are above and beyond the initial forecast or budget for a project or product.

Differential Revenue

The difference in revenue generated under two different scenarios or as a result of a specific action.

Additional Cost

Expenses incurred that are over and above the originally planned or estimated costs.

Selling Price

The amount at which a product or service is offered to customers for purchase.