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:

Common Stock

Equity securities representing ownership interests in a corporation, providing voting rights and a share in the company's profits.

Market Value

The current price at which an asset or service can be bought or sold in a public market.

Initial Owners

The original investors or founders who hold ownership stakes in a company at its inception.

Corporation

A legal entity distinct from its owners, providing limited liability protection, and able to own assets, incur debt, and sell ownership shares.