​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:

Subtle Form

An indirect or not immediately obvious manner of manifestation or expression.

Identification

A psychological process in which an individual assimilates attributes, beliefs, or standards of another person or group, often serving as a role model.

Fight-or-flight Response

An automatic physiological reaction to perceived harmful events, attacks, or threats to survival, prompting either combat or retreat.

Walter Cannon

A physiologist known for his work on the fight or flight response and for coining the term 'homeostasis' to describe the process of maintaining internal stability in an organism.