You Would Be Willing to Pay a Maximum of $1,000

question 69

Multiple Choice

You would be willing to pay a maximum of $1,000 for an airplane ticket to London during the summer,and you can buy an airplane ticket for $890.Your consumer surplus is

• A) $90.
• B) $100.
• C) $110.
• D) $190.

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Definitions:

Equity Method

An accounting technique used when a company holds significant influence over another (associate) but does not have full control, requiring the investment to be recorded at original cost and subsequently adjusted for the investor’s share of the associate's profits or losses.

Sale

is the transaction between two parties where the ownership of goods, services, or assets is transferred from the seller to the buyer for a specified price.

Acquisition Differential

The difference between the purchase price of a subsidiary and the fair value of its identifiable net assets at the acquisition date, commonly known as goodwill.

Consolidated Equity

The total equity of a parent company and its subsidiaries after intercompany balances and transactions have been eliminated.