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:

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development stages.

Successive Changes

A process involving a series of modifications, adjustments, or developments that follow one after the other in a particular order or sequence.

Continuous Development

Continuous development refers to a progression where improvements or growth occur gradually and steadily over time without sudden leaps or stages.

Gratification

The satisfaction or pleasure felt when a need or desire is fulfilled.