Jung Is Willing to Pay $85 for a New Jacket

question 173

Multiple Choice

Jung is willing to pay $85 for a new jacket that sells for $70.Eddie is willing to pay $65 for that same jacket.What is the total consumer surplus for Jung and Eddie?

• A) $30
• B) $15
• C) $20
• D) $25
• E) $155

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Definitions:

Liquid Assets

Assets that can be easily converted into cash with little impact on their value.

Retained Earnings

The portion of net income that is not distributed to shareholders and is instead reinvested in the company.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the company's assets.

Financial Statement

A record that details the financial activities and condition of a business, person, or other entity.