Which of the Following Would Be the Best Example of Consumer

question 161

Multiple Choice

Which of the following would be the best example of consumer surplus?

• A) Jane does not get cell-phone service because she feels that it is worth less than the $30 a month fee.
• B) Sam pays $8 for a haircut that is worth $10 to him.
• C) Ralph buys a house for $104,000, the maximum amount that he would be willing to pay for it.
• D) Sue purchases a book for $20 and uses a credit card to pay for it.

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Definitions:

Decimal Places

Decimal places refer to the digits that appear after the decimal point in a numerical value, representing fractions of a whole.

LCD Television

A television display technology based on liquid crystal display, which uses liquid crystals to produce images.

GST

Goods and Services Tax, a value-added tax imposed on most goods and services sold for domestic consumption.

PST

PST stands for Provincial Sales Tax, which is a tax levied by individual provinces in Canada on the sale of goods and services.