Figure 4-7 -Refer to Figure 4-7. the Figure Above Represents the Market

question 172

Multiple Choice

Figure 4-7
-Refer to Figure 4-7. The figure above represents the market for iced tea. Assume that this is a competitive market. If 10,000 units of iced tea are sold

• A) the deadweight loss is equal to economic surplus.
• B) producer surplus equals consumer surplus.
• C) the marginal benefit of each of the 10,000 units of iced tea equals $3.
• D) marginal benefit is less than marginal cost.

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Definitions:

Trade Discount

A reduction in the retail or list price of a product or service provided by a seller to a buyer in the trade channel.

Trade Discount

A reduction in price offered by a seller to a buyer for purposes of increasing sales, typically calculated as a percentage off the list price.

Trade Discount

A deduction from the list price of goods agreed upon by the seller and the buyer, typically offered by suppliers to retailers.

Trade Discount

A reduction granted by a supplier on the list or catalog prices of goods or services, often based on the volume of transactions.