Use the Figure Below to Answer the Following Questions

question 5

Multiple Choice

Use the figure below to answer the following questions. Figure 5.2.1
-Consider Figure 5.2.1.If the price is $4,what is the consumer surplus from the third unit of the good?

• A)$0
• B)$1
• C)$2
• D)$3
• E)$4

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Definitions:

Bananas

A type of edible fruit that is elongated and curved, with soft flesh rich in starch covered by a rind, which may be green, yellow, or brown when ripe.

True Value

The actual, inherent worth of an asset, commodity, or transaction, as opposed to its market price or cost of production.

Retail Price

The price at which goods or services are sold to the end consumer, typically higher than the wholesale price to cover business costs and generate profit.

Department Store

A large retail establishment offering a wide range of products across different categories, typically organized in separate departments.