Assume There Are Three Hardware Stores,each Willing to Sell One

question 39

Multiple Choice

Assume there are three hardware stores,each willing to sell one standard model hammer in a given time period.House Depot can offer their hammer for a minimum of $7.Lace Hardware can offer the hammer for a minimum of $10.Bob's Hardware store can offer the hammer at a minimum price of $13. Given the scenario described,if the market price of hammers decreased from $15 to $13,which of the following can be said with certainty?

• A) Bob's Hardware would no longer participate in the market.
• B) Total producer surplus would decrease.
• C) Only Bob's Hardware will experience a drop in producer surplus.
• D) Bob's Hardware would continue to participate in the market.

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Definitions:

Passionate Love

An aroused state of intense positive absorption in another, usually present at the beginning of a romantic relationship.

Swaying Footbridge

This refers to a bridge that moves or oscillates due to the wind, movement of people, or structural flexibility, affecting its stability and the comfort of users.

Mere Exposure Effect

People often form a liking for things simply because they have encountered them before, a common psychological effect.

Companionate Love

A form of love characterized by deep affection, commitment, and intimacy, as opposed to passion.