Frieda Is at Her Local Florist to Buy a Dozen

question 11

Multiple Choice

Frieda is at her local florist to buy a dozen roses.She is willing to pay $75 for the roses, and buys them for $75.Frieda's consumer surplus from the purchase is

• A)$150.
• B)$75.
• C)$37.50.
• D)$0.

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and potential dividends.

Bid-Ask Spread

The difference between the highest price that a buyer is willing to pay (bid) for an asset and the lowest price that a seller is willing to accept (ask).

Dealer

An individual or firm in the financial services industry who buys and sells securities for their own account, whether through a broker or otherwise.

Buy and Sell

The basic actions in trading and investing where "buy" refers to acquiring an asset, and "sell" indicates disposing of an asset.