If the Price a Buyer Pays for a Good Is

question 171

Multiple Choice

If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then ____________ is _______________.

• A) producers' surplus; $103
• B) consumers' surplus; $103
• C) consumers' surplus; $3
• D) producers' surplus; $3
• E) consumers' surplus; $40

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Definitions:

Lower Quality

Refers to products or services that do not meet the expected standards or performance criteria compared to others in the market.

Price Ceilings

Legally imposed maximum prices on goods or services that aim to keep them affordable for consumers, which can lead to shortages if set below the market equilibrium.

Black Markets

Illegal trading systems where goods or services are bought and sold at prices not regulated by the government, often in violation of price controls or rationing.

Black Market

An illegal trading system where goods or services are exchanged without the authorization of the government.