Suppose the Cost of Producing Cellular Phones Declines from $25

question 63

Multiple Choice

Suppose the cost of producing cellular phones declines from $25 to $20.If buyers' valuations remain fixed at $30, the transaction would create _____ more economic value.

• A)$10
• B)$5
• C)$2
• D)$15

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Definitions:

Political Reforms

Changes introduced to the political system of a country or region aimed at improving governance, enhancing democracy, and addressing flaws in the existing structure.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual rate.

Exchange Rate

The value of one currency expressed in terms of another currency, used to determine how much of one currency can be exchanged for another.

Tax Rebate

A refund on taxes when the tax liability is less than the taxes paid.