Use the Following to Answer Questions -(Table: Pumpkin Market)There Are Two Consumers,Andy and Ben,in the Market

question 152

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Pumpkin Market }\\\begin{array} { l c c c c } \hline \begin{array} { l } \text { Quantity of } \\\text { Pumpkins }\end{array} & \begin{array} { c } \text { Andy's } \\\text { willingness to pay }\end{array} & \begin{array} { c } \text { Ben's willingness } \\\text { to pay }\end{array} & \text { Cindy's cost } & \text { Diane's cost } \\\hline \text { lst pumpkin } & \$ 12 & \$ 11 & \$ 3 & \$ 4 \\\text { 2nd pumpkin } & 10 & 9 & 5 & 6 \\\text { 3rd pumpkin } & 8 & 7 & 8 & 9 \\\text { 4th pumpkin } & 6 & 5 & 10 & 11 \\\hline\end{array}\end{array}$$
-(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,the total producer surplus is:

• A) $0.
• B) $8.
• C) $11.
• D) $14.

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Definitions:

Significant Noncash

Transactions or activities that have a major impact on a company's financial position but do not involve a direct exchange of cash.

Preferred Shares

A class of stock that provides owners with a fixed dividend ahead of the company's common shares and with priority over common shares in asset liquidation.

Note Payable

A formal, written agreement to pay a certain amount of money, typically including interest, to the lender at a future date or on demand.

Write-off

The accounting action of declaring an asset's value as zero, often due to irrecoverable debts or asset devaluation.