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

question 92

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 $10:

• A) total producer surplus falls by $5.
• B) producer surplus for each producer falls by $5.
• C) Bob's Hardware no longer sells hammers.
• D) total producer surplus falls by $15.

---

Definitions:

Values

Core beliefs or standards that guide behavior and decision-making for individuals or groups.

Ethnic Enclave

A geographic area with a high concentration of people from the same ethnic group, creating a community with cultural distinctiveness.

Ethnic Group

A community of people who share a common cultural background, ancestry, language, or social experience.

Community Businesses

Small or local businesses that serve and are supported by the local community.