If a Consumer Places a Value of $20 on a Particular

question 85

Multiple Choice

If a consumer places a value of $20 on a particular good and if the price of the good is $25,then the

• A)consumer has consumer surplus of $5 if he buys the good.
• B)consumer does not purchase the good.
• C)price of the good will rise due to market forces.
• D)market is out of equilibrium.

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Definitions:

Promotion Activities

Marketing efforts designed to increase awareness, interest, and sales of a product or service through various strategies such as advertising, discounts, and events.

Industry

A group of companies or businesses that produce or supply goods, services, or sources of income within a similar sector.

Test Marketing

Introduction of a new product supported by a complete marketing campaign to a selected city or geographic area.

Product Development

The creation of new products or improvement of existing products to meet customer needs or market opportunities.