Use the Figure Below to Answer the Following Questions

question 71

Multiple Choice

Use the figure below to answer the following questions.

Figure 5.2.1
-Consider the demand curve in Figure 5.2.1. If the price of the good is $4, what is the consumer surplus?

• A)$32.50
• B)$25.00
• C)$20.00
• D)$12.50
• E)none of the above

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Definitions:

Consideration

In contract law, consideration refers to something of value that is exchanged between parties as part of an agreement, making the contract legally binding.

Apparent Authority

A situation where a person appears to have been given the power by a business to act on its behalf, even if no formal authority has been granted.

Manifest Consent

Clearly and unmistakably expressed agreement or approval to an action or proposal.

Authorized Act

An action that has been officially approved or sanctioned by the proper authority.