If Harry Only Pays $25,000 to Purchase a New Car

question 109

Multiple Choice

If Harry only pays $25,000 to purchase a new car even though he would have been willing to pay as much as $35,000 for the car, this indicates that

• A) Harry is an irrational consumer.
• B) The seller earned a $10,000 profit on the sale of the car.
• C) Harry reaped $10,000 of consumer surplus from the transaction.
• D) The seller received $10,000 worth of producer surplus on the transaction.

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Definitions:

Energy Conservation

The practice of reducing the use of energy through more efficient systems, processes, or behaviors to preserve resources.

Small Businesses

Enterprises or firms that maintain a small number of employees, have comparatively lower volume of sales, and are usually independently owned and operated.

Founders

Individuals who establish an organization or company, often bringing an innovative idea into existence.

Willing To Take A Risk

The readiness to engage in actions that involve uncertainty or danger, typically in pursuit of a significant reward.