If a Consumer Places a Value of $15 on a Particular

question 34

Multiple Choice

If a consumer places a value of $15 on a particular good and if the price of the good is $17,then the

• A)consumer has consumer surplus of $2 if he or she buys the good.
• B)consumer does not purchase the good.
• C)market is not a competitive market.
• D)price of the good will fall due to market forces.

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in a stable market condition.

Demand Decreases

A reduction in the quantity of a good that consumers are willing and able to buy at each possible price.

Equilibrium Quantity

The amount of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded.

Demand Increases

A situation in which the quantity of a product or service that consumers are willing and able to buy at a specific price rises.