Assume the Market in the Graph Shown with Demand D

question 15

Multiple Choice

Assume the market in the graph shown with demand D and supply S₁ is in equilibrium at a quantity of 5 units.Consumer surplus is:

• A) $5.
• B) $10.
• C) $45.
• D) $9.

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Definitions:

Reciprocity

The exchange of goods and services, of approximately equal value, between two parties.

Social Obligations

Social obligations refer to the duties or responsibilities imposed by society upon its members, which could involve participating in community service, adhering to societal norms, or fulfilling familial roles.

Making Profits

The process of generating financial gain from business activities after subtracting all expenses, taxes, and costs.

Gaining Prestige

The process of acquiring respect, honor, or recognition from others within a social group.