Use This Information to Answer the Following Question

question 50

Multiple Choice

Use this information to answer the following question. A periodic inventory system is used.
-Ending inventory under LIFO is

• A)$452.
• B)$429.
• C)$214.
• D)$237.

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Deadweight Loss

Reductions in combined consumer and producer surplus caused by an underallocation or overallocation of resources to the production of a good or service. Also called efficiency loss.

Producer Surplus

is the difference between what producers are willing to accept for a good or service versus what they actually receive, due to market prices.

Consumer Surplus

The difference between the total amount that consumers are willing to pay and the actual amount they pay for a good or service.