If the Price a Consumer Pays for a Product Is

question 133

Multiple Choice

If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus relevant to that purchase is

• A)zero.
• B)negative, and the consumer would not purchase the product.
• C)positive, and the consumer would purchase the product.
• D)There is not enough information given to answer this question.

---

Definitions:

Double-Declining-Balance Method

An accelerated method of depreciation that doubles the regular depreciation rate, reducing the asset’s book value more quickly in the early years of its life.

Depreciation Expense

Assigning the cost of a material asset over the duration of its usefulness.

Estimated Salvage Value

The projected value of an asset at the end of its useful life, used in calculating depreciation.

Straight-Line Depreciation

A method of allocating an asset's cost evenly across its useful life.