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

question 130

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 $11:

• A) total producer surplus would fall by $4.
• B) producer surplus for each producer falls by $4.
• C) House Depot's producer surplus falls by $4.
• D) total producer surplus falls by $8.

---

Definitions:

Realize

To become fully aware of (something) as a fact; to understand clearly.

Peers

Individuals who are of similar age, status, or group, often playing significant roles in socialization and influence.

Attributional Styles

Tendencies of individuals to attribute causes to their successes and failures in a particular way that can affect their motivation and emotional state.

Helplessness

A state of being unable to prevent or avoid negative situations or feelings, often leading to a lack of self-efficacy.