Based on the Graph Below, What Is the Consumer Surplus

question 203

Multiple Choice

Based on the graph below, what is the consumer surplus of the 10^th unit bought/sold?

• A)$1.25
• B)$2.25
• C)$2.75
• D)$3.50
• E)$6.25

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Definitions:

Mutually Exclusive

Situations or choices where the acceptance or selection of one necessarily excludes the other(s).

Value Foregone

The benefit given up by choosing one investment or action over another alternative; essentially the opportunity cost of a decision.

IRR

The Internal Rate of Return is a financial measure utilized to calculate the expected profit of prospective investments.

Mutually Exclusive

Situations or events that cannot occur at the same time, where the selection or occurrence of one precludes the possibility of the other.