Consumer Surplus in a Market for a Product Would Be

question 52

Multiple Choice

Consumer surplus in a market for a product would be equal to ________ if the market price was zero.

• A)zero
• B)the area between the supply curve and the demand curve
• C)the area above the supply curve
• D)the area under the demand curve

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Definitions:

Net Present Value

The calculation used to determine the current worth of a future stream of cash flows, adjusted for the time value of money.

Depreciation Tax Shield

The reduction in income taxes that results from taking a deduction for depreciation on the company's tax return, effectively reducing taxable income.

Cash Outlays

Payments in cash for expenses or investments made by a business or individual.

Auto Leases

Contracts that allow a person to use a car for a set period of time in exchange for regular payments, without owning the vehicle.