Suppose the Most You Would Be Willing to Pay for a Plane

question 94

Multiple Choice

Suppose the most you would be willing to pay for a plane ticket home is $250. If you buy one for $175, then your economic surplus is:

• A)$250.
• B)$175.
• C)$75.
• D)$0.

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Definitions:

Express Authority

Authority expressly given to an agent or representative, defined explicitly in words or writing.

Apparent Authority

a situation where a person appears to have the authority to act for another, leading a reasonable third party to believe that authority exists.

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.

Express Authority

Is the specific powers granted by a principal to an agent in a contractual agreement to perform certain actions on behalf of the principal.