-Refer to the Graph Above to Answer This Question

question 104

Multiple Choice

-Refer to the graph above to answer this question.The graph shows a tennis coach charges $20 per hour for tennis lessons for adults and $10 per hour for tennis lessons for children.Suppose the coach provides lessons to the children only.What is the amount of the consumer surplus of the children taking the tennis lessons?

• A)$20.
• B)$50.
• C)$120.
• D)$160.
• E)Cannot be determined.

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and costs necessary to make the sale.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Ending Inventory

The total value of all merchandise or goods held by a company at the end of an accounting period, which has not been sold.

Allowance Method

An accounting technique used to account for bad debts, where companies estimate uncollectible accounts receivable and record them as an allowance for doubtful accounts.