​A Consumer Values a Car at $30,000 and a Producer

question 44

Multiple Choice

​A consumer values a car at $30,000 and a producer values the same car at $20,000.If the transaction is completed at $24,000,the transaction will generate:

• A)​No surplus
• B)$4,000 worth of seller surplus and unknown amount of buyer surplus
• C)$6,000 worth of buyer surplus and $4,000 of seller surplus
• D)​$6,000 worth of buyer surplus and unknown amount of seller surplus

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Definitions:

Clinical Trial

A research design that tests the effects of medical treatment. Many clinical trials are randomized controlled trials that allow researchers to determine whether a new treatment is or is not effective.

Ex Post Facto Study

A research design that examines the effects of an independent variable on a dependent variable, where the study is conducted after the events have occurred.

Independent Variable

In research, a variable that is manipulated or changed to observe its effect on a dependent variable.

Longitudinal Studies

Research design that involves repeated observations of the same variables over short or long periods of time.