Use the Following to Answer Question

question 36

Multiple Choice

Use the following to answer question:
-(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.If Andy consumes one fewer pumpkin and Ben consumes one more pumpkin than in equilibrium,total surplus will _____ by _____.

• A)increase;$17
• B)increase;$15
• C)decrease;$8
• D)decrease;$1

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Definitions:

Attachment

Under the Personal Property Security Act, the situation in which value has been given pursuant to the contract, giving the creditor a claim against the assets used as security if there is a default by the debtor.

Purchase Money Security Interest

A legal claim or lien on collateral provided by a borrower to secure a loan used to purchase the collateral.

Personal Property Security Act

Legislation governing the use of personal property as security for a loan or obligation, detailing rights concerning collateral.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a loan.